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 Are reimbursements included on 1099's?
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Cary
Apprentice

Rocklin, CA
USA
1 Posts

Posted - 11/09/2004 :  09:42:39 AM  Reply  Reply with Quote
When a company sends you a 1099, are the reimbursements included in the total, or are just the fees paid to you included?

SJones
Star Contributor

USA
3120 Posts

Posted - 11/09/2004 :  12:10:51 PM  Reply  Reply with Quote
The ones I have received so far, did not include the reimbursement part. Most companies don't claim that this is income and does not have to be reported. However, if you do a search on this board, you will find that the opinions are divided on this issue.

Susanne
MSPA Silver Certified!
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RebekahTN
Valued Contributor

McMinnville, TN
USA
125 Posts

Posted - 11/14/2004 :  8:27:20 PM  Reply  Reply with Quote
For the 1099s and W4s I received last year MOST did not include reimbursements on them but some did. Of the ones that included the reimbursements all but 2 of those had the totals separated out. I kept all my paperwork and record everything in the MSBible so if it ever came up I would have everything straight and exact amounts.

For the companies that did not include reimbursements I didn't include anything about them on my taxes. For the ones that did include them I added the total as income and then expensed out the reimbursements. It would have been a MAJOR headache to figure it out if I hadn't been using the MSbible or similar program.

Hope that helps.

Shopping and Merchandising in McMinnville, Manchester, Smithville, Tullahoma, Woodbury, Sparta, Cookeville and Murfreesboro Since April 2003.
MSPA Silver Certified # xxfuj7
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Andrea P
Star Contributor

Wheatley Heights, New York
USA
546 Posts

Posted - 11/23/2004 :  08:08:33 AM  Reply  Reply with Quote
I've noticed that Shop n' chek keeps a separate list of my earnings (shop fees) and reimbursements. I guess it depends on the company and how accurate their record keeping is. It's always good to ask questions and do your own 'homework' with each company though. It certainly can't hurt.

MSPA Gold Shopper # 63irfm
Shopping Suffolk & Nassau Counties; Manhattan; Queens; Brooklyn and Bergen County, New Jersey
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KimBie
Star Contributor

USA
606 Posts

Posted - 01/28/2005 :  1:50:59 PM  Reply  Reply with Quote
quote:
Originally posted by RebekahTN

For the 1099s and W4s I received last year MOST did not include reimbursements on them but some did.
The forms received are 1099's for IC's and W-2's for employees.

Kim
MSPA Silver Certified
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Deanna
Contributor

Hamilton, OH
USA
94 Posts

Posted - 01/28/2005 :  6:01:24 PM  Reply  Reply with Quote
Companies have to issue a 1099-MISC to unincorporated nonemployees for services provided. So "nonemployee compensation" literally is just the fees for services. However, the following relevant information is found in the instructions of examples of payments to report:

- "Payment for services, including payment for parts or materials used to perform the services if supplying the parts or materials was incidental to providing the service. For example, report the total insurance company payments to an auto repair shop under a repair contract showing an amount for labor and another amount for parts, if furnishing parts was incidental to repairing the auto."

If separate records are readily available of fees only, these would tend to be used. For one thing, it would reduce how many 1099s had to be issued. But since the payment for materials may be incidental to the service, they would not have to split it and could report the total they had paid you.

- "A fee paid to a nonemployee, including an independent contractor, for travel reimbursement for which the nonemployee did not account to the payer, if the fee and reimbursement total at least $600."

If the reimbursement were considered similar a travel reimbursement where they gave you an allowance but you did not have to account back to them how it was spent, they could include the amount in your 1099. Not having to account for dates, times, purposes, and amounts is rather uncommon. Most of the time you even have to provide a copy of the receipt.

In both of these cases, it is up to the contractor/service provider to keep their own records of properly deductible costs.

MSPA Gold Certified #ct8cxq
Shopping Hamilton, Fairfield, West Chester and the northern Cincinnati suburbs.
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Amber J
Star Contributor

Mesa, Arizona
USA
628 Posts

Posted - 01/28/2005 :  9:57:27 PM  Reply  Reply with Quote
Just a thought, but since this is a very prolific forum with many users with questions, maybe Ray could invite someone from IRS or other tax outlet to help answer our questions? Of course, we would not rely on them solely, but just to help answer some of the pending questions that occur year after year to so many, and lead us in the right direction.

MSPA Gold Certified

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CorrieS
Star Contributor

Briarwood, NY
USA
932 Posts

Posted - 02/01/2005 :  09:44:57 AM  Send CorrieS an AOL message  Reply  Reply with Quote
Well, I just got my 1099 from a company I did a big job for that required a BIG layout of expenses... nothing was separated out so the amount of the 1099 was BIG... I was pretty shocked when I saw the number!!! But I will just have to "do the math," I guess.

Corrie S.
MSPA Silver Certified
shopping NYC & Nassau County... and willing to travel...
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JoyB
Valued Contributor

Cherry Hill, NJ
USA
212 Posts

Posted - 02/06/2005 :  7:31:43 PM  Reply  Reply with Quote
Was this a "cookie bar" job. I was shocked too (if we are talking about the same company). I also did another "pump" job with a sizable purchase outlay that I assume is included. I think it's kind of odd that they include $1000's of dollars in product purchase amounts as income on the 1099.

Gold Certified Shopper in South Jersey - Cherry Hill, Marlton, Voorhees, Moorestown, Mt. Laurel, Berlin, Medford and other neighboring towns.
joy.bennett@verizon.net
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CorrieS
Star Contributor

Briarwood, NY
USA
932 Posts

Posted - 02/07/2005 :  12:51:19 PM  Send CorrieS an AOL message  Reply  Reply with Quote
Yep, the biggest chunk was a Cookie Bar job (for which I laid out - and was reimbursed for - approximately $3000). There were also some cigarette routes and one or two smaller jobs. One of the cig. jobs was actually last December (2003) but was paid in January or February 2004.

Corrie S.
MSPA Silver Certified
shopping NYC & Nassau County... and willing to travel...
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Cath
Star Contributor

USA
703 Posts

Posted - 02/23/2005 :  8:27:36 PM  Reply  Reply with Quote
I received a 1099 from one firm which I only did reimbursement jobs for. A couple of the jobs paid a small fee, perhaps $10 in addition to the reimbursement. The reimbursements were large amounts. Along with the 1099 which included the reimbursements and the small fees, they informed me that it was my responsibility to divide the reimbursement amounts from the fee amount. The amount of my fees (maybe a total of $50) was easily used up in gas and parking to get to these jobs. Yet the 1099 is for a pretty big number. So, in some cases, the 1099 does include the reimbursement amount (even though I provided copies of my receipts to the ms firm and accounted for my expenses).
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Cchrissyy
Valued Contributor

CA
USA
170 Posts

Posted - 02/24/2005 :  08:21:50 AM  Reply  Reply with Quote
I've never had a 1099 that included reimbursements, but check for yourself every time!

Chrissy
Northern CA full-time shopper
Proudly MSPA gold certified!
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LindJorg
Star Contributor

Tacoma, WA
USA
921 Posts

Posted - 03/02/2005 :  12:09:41 AM  Reply  Reply with Quote
hi everyone. I talked with my accountant and this is what I do. I list my shops....dates....my expenses even if I am reimbursed..and how much I am paid...( I also list mileage in a column).....Anyhow, I claim how much I was paid..total receipts and then under total expenses...I deduct my costs for required purchases..included also is mileage to & from the shops.....computer paper supplies and ink and also, cost for internet access since it is required for most shops to enter the results online. I claim only $15 a month for internet access although I have high speed and it costs more but realistically, unless you only use your computer for business, you cannot deduct the full amount. Anyway, if you do a restaurant and they pay you $50 and you spend $50...it is a wash on your filing but I do report the $50 paid and $50 expense because otherwise those bank deposits or paypal deposits or checks sent to you, could be questioned why you didn't claim them. Hope this all makes sense. Bye for now.

Linda
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PaulaKC
Valued Contributor

Kansas City, MO
USA
177 Posts

Posted - 04/15/2005 :  06:33:01 AM  Reply  Reply with Quote
How do you list your reimbursement expenses on your return? Using TaxCut, I listed them as other expenses, and described them as "required purchases," since I couldn't find any other category in which they seemed to go.

MSPA Gold Certified
Shopping Kansas City metro area, Northern Missouri, San Francisco and Washington, DC
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ArtemisPub
Contributor

West Palm Beach, FL
USA
152 Posts

Posted - 04/15/2005 :  12:47:48 PM  Reply  Reply with Quote
I've been involved in some kind of business and real estate investment for some 40 years.

There are two items: Income and profits after deducting expenses and capital improvements.

If an IC (ie, sole proprietor) advances out of pocket funds to purchase items necessary to earn income/do business, then, if the IRS specifically does NOT rule against them, they are considered customary costs of doing business and/or earning income. An IC plumber, for example, must purchase and repair tools and equipment, own and maintain a vehicle, insurance and licensing, advertising/promotion, association fees and dues, union dues, and many other purchases and expenses that are required to conduct business and earn income.

MSing is somewhat unique in this regard, because in almost all cases, the IC must advance funds to qualify for and fulfill contractual agreements and then wait for reimbursement, sometimes many months AND in some cases, the IC may not receive fees and reimbursement if the shop assignment is rejected.

I would report these incidences as "losses." Losses are also customary for businesses, happens all the time! These losses should offset some gain(s).

The IRS knows what it costs various enterprises to do business, and what their general annual income/profits are. If you, say, earn $20,000 Net per annum as an MS IC, a certain percentage of that income will require expenses and capital purchases, so you didn't really net $20,000.

In my book, anything I purchase that is necessary to conduct business as an IC is a customary AND necessary expense. Moreover, an IC assumes risk whereas a wage-earner does not. As above, there are instances where a MS IC may sustain losses.

Artemis Smith
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Timo
Apprentice

Minneapolis, MN
USA
1 Posts

Posted - 03/06/2006 :  09:47:40 AM  Reply  Reply with Quote
Can someone who has received a 1099 from Corporate Research International tell me if CRI included reinburstment on the 1099.

Timo
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LolaKelly
Member

Burbank, CA
USA
25 Posts

Posted - 03/17/2006 :  01:34:08 AM  Visit LolaKelly's Homepage  Reply  Reply with Quote
This is my time of year to prepare tax returns for all who come to my office, I run into your situation all the time.

As for deductions in our field of work, these are what you want to claim:

All 1099 money is placed on the Schedule C; you need to pay self employment tax. Which is good as it reduces your income.

Miles, (January 1, 2005 to August 31, 2005, 40.5 cents per mile, then from September 1, 2005 to December 31, 2005, 48.5 cents per mile) Repairs on your vehicle (gas, oil, repairs) see if the standard or actual is higher
Parking
AAA Club
All office expenses – paper, pens, pencil’s, paper clips, staples, stapler, ink cartages, post office box, etc…all supplies you use for your job.
Advertising (business cards)
Taxes and licenses
Food (while working for 1099)
Medical is 100% write off if you pay for it
Sep, Simple qualified plans
Travel for certification of gold or silver if you attend classes, you get ALL your expenses. Or, if you travel for resets etc…

You want to deprecate your desk, chair, printer, computer, phone, camera, recording devises. Now, you can take a 179 all at once, but if your going to do the business for 5 year you want to do MM for a recovery period of 5 years. Using Form 4562.
On the back side of the Form 4562 for your vehicle - You also want to depreciate you vehicle. Remember, you take your car registration on a Schedule A unless you do not have over $5,000 in standard deductions. Then it goes on the Sch C, if you have no 1099 income you take it on the 2106.


Form 8829 if your running a home based business (which we all do). This is where you will take the utilities, (electric, long distance of phone bill, water, gas), rent (mortgage), gardener, water delivery, etc….if you own DO NOT DEPRECATE your home, it is Capital gains when you sell your house.

If you only have 1099 income, make estimated taxes through the year, so that you do not owe a penalty. Take about 30% of each check and place it in a Money Market so that it makes something for you, not the government.

I will inform you all; the IRS has hired 400 employees to review all Schedules C

I will let you know that cell phones are no long being an expense, or is the service. Now if you have roaming charges and charges outside of your regular service you are allowed to take it. The IRS says: “cell phone for business get personal calls and that voids the term, Business Phone.”

If your work for an employer and they do not reimbursed for miles, work repairs on your vehicle, related expenses, you file a 2106.

If you moved 50 miles from you old work to your new work, use form 3903, you get everything, BUT FOOD.

My suggestion is to get a Federal ID and a business license. I have had it for 25 years and I have never been audited, but yet again, I have been doing taxes for 25 years and know my limits.

Go to www.irs.gov then more forms and publications, forms and down load a SS4 for your Federal ID #. Here is the link www.irs.gov/formspubs/lists/0,,id=97817,00.html
Look into the Small Business section, and get the disk for SB.

I will try to check in on the site to see if any of you need help, but the next four weeks are what we call “HELL WEEK”.

Good Luck!!

Lola




Lola
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