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- 1099-NEC for reimbursement?
1099-NEC for reimbursement?
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Nancy100
Level 2
04-15-2022
12:46 PM
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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?
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3 Comments 3
BobKamman
Level 15
04-15-2022
01:44 PM
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And if she files a Schedule C, the city will ask for her business license. What is the amount involved? Closer to $500 or $5,000?
Nancy100
Level 2
04-15-2022
02:17 PM
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It is $1200.
BobKamman
Level 15
04-15-2022
03:22 PM
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I would attach a one-paragraph explanation to the return, not that anyone at IRS is going to read it but in case your client hears from them in a couple years and you're not around to help. I don't think that's enough to generate a CP-2000, even if your client is in a 22%/15% tax bracket.
