Localfund.com - All about Fund and Investment
*Home>>>Income Fund

I received 1099-misc for a reimbursement. It definitely was not income!?


We receive funding through our state MH/MR office for respite care for our special needs daughter. We went on vacation over the summer and used an out of state respite provider. We payed the provider and then were reimbursed by our local respite provider (who in turned billed MH/MR). I received the 1099-misc, for my reimbursement expense, which means I need to report this reimbursement and pay taxes on it! I am not even sure who I should be contacting to fix this mess. Obviously, we should NOT be paying taxes on this amount.

You need to do a nominee 1099-Misc to the person you paid. That will show that you paid someone else. You can then report the 1099-Misc on a schedule C and then subtract the 2nd 1099-Misc as contract labor, bringing the net effect to zero.

Tags
  Investment Account   Invest Money   Invest in Gold   Invest Fund   Income Fund   HYIP   High Yield   Hedge Fund
Related information
  • How do i buy a home with such a low income?

    In order to borrow enough money to buy a house, you have to be able to show the lender that you can repay the loan. That means you need to be able to demonstrate that your budget allows for a h...

  • Investing, how do you invest for retirement on a limited income?

    Hard to say.....first, we need to know how near retirement you are and how limited we are talking here. If you have a long time until retirement and very limited money ($50 to $100 a month) I woul...

  • Can I get my VA Loan to buy a house while I am in Law School and have no income?

    Well beening a veteran should help, you in some cases, you are first time home buyer, will get in the door but some lenders look for cerlateral, but try a good investment banker and see what option...

  • Can we deduct an IRA cotribution for a non-working spouse not covered by Company Plan,regardless of Income ?

    Yes. As long as the spouse invested in a traditional IRA and not a Roth IRA and is not covered by any other retirement plan, you can deduct the amount up to 4,000. 5,000 for those age 50 and above...

  • If someone owns a company but hasn't filled 06 tax return yet, how do you verify thier income?

    Absent his tax return, only a full audit of the company records can be used to verify income. However, what you are not understanding here is that every one of the expenses you are claiming he inc...

  • If I take money out of my trust, then pay back monthly, does the IRS tax the 'income'?

    It sounds like you are describing a loan from the trust. If that is the case, loans are neither income nor taxable. As others have said, depending on how the trust was structured, you may or may ...

  • What's the best way to invest money, while at the same time optimally sheltering your income from taxes?

    Your 401k and IRA are both designed for tax sheltered investing. Currently you can invest up to approximately $20,000 using both of these vehicles. After that your options become very limited Tax f...

  • If I make profit in trading in equities will that profit be taxed as business income or short term capital gai

    See that depends on nature of your equity trading. As you yourself describe purchase and sale in shares as TRADING, Income tax department shall take it as Business Income and tax @33% shall be char...

  •  

    Categories--Copyright/IP Policy--Contact Webmaster