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Subject:  Re: 1099 for expense reimbursement Date:  9/18/2012  10:04 PM
Author:  TMFPMarti Number:  116620 of 123001

Ah HA! Some internet searching turned up several references to Rev. Rul. 62-77.

Revenue Ruling 63-77: The IRS specifies that reimbursements made to individuals by a prospective employer for expenses incurred in connection with travel for interviews are not considered wages for federal tax purposes.

It's been my experience that when I'm tempted to say, "A-ha!" I'm about to get into trouble. Alas, this affliction seems to affect you too. First, read the entire ruling, not just a summary to which you attach the implications you desire:

"Wages" is a term of art, and it has nothing to do with what the prospective employer did here. Wages are paid by employers to employees, and what that ruling says that under specific circumstances monies paid on behalf of pr