I seriously doubt that your husband had exactly $1,000 in expenses which he meticulously documented to the payor. Rather, it sounds like they figured his cost to be roughly $1,000 including a little something for his time and trouble and cut him a check in that amount. Such an arrangement with a nonemployee is correctly reported as nonemployee compensation on Form 1099-MISC. Your husband reports it on Schedule C along with the expenses he can document. The net is subject to Self-Employment Tax.Thanks, Phil.I don't have the 1099 in front of me and was the one who guesstimated its total for the purposes of asking the question here. He did fax them his receipts; they sent him a check for the exact amount. Does that information change anything in what you wrote above?
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