My client has received a reimbursement for medical expenses that she paid out for her son.  The company issued a 1099-NEC box 1 for the amount.  My initial thought is, shouldn't this have been recorded on a 1099-M box 3? And is there any way I can give her a deduction for these medical expenses paid to offset the income? It seems dubious to file a schedule C and write it off there as she was clearly not trying to be in business, nor did she provide services.  There also aren't enough expenses to clear the schedule A expenses floor. Am I missing something?