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Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121326  
Subject: Re: 1099-MISC for Job Interview Expenses Date: 4/5/2000 12:19 PM
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<< I simply got the 1099Misc, and nothing was ever on any W-2 form (I didn't even get hired at this new job till this year). If I follow this advise then I don't need to claim the 1099 income at all. This seems logical to me, just wanted to see what you thought before I finished my taxes. Is this advice that I received kosher? Is there really something else I need to do with this 1099-Misc? >>

The job interview is a legitimate business travel expense. Travel expenses can be reimbursed through an accountable plan or a nonaccountable plan. Accountable plan reimbursements are not included in your income and MAY appear in Box 14 of your W-2.

Nonaccountable plan reimbursements are included in your wages on your W-2 and are subject to income tax withholding, SS, Medicare, and FUTA taxes. They are included in your Boz 1 amount on the W-2. You file Form 2106 for your expenses and can only claim them as a miscellaneous itemized deduction subject to the 2% of AGI exclusion.

You will notice the total absence of reference to Form 1099-MISC. That's because its use is inappropriate. Without knowing whether your employer's plan is accountable or nonaccountable I can't tell you what your W-2 should look like, but I can tell you that you shouldn't have received a 1099.

Go back to your payroll people and ask for a corrected W-2 and withdrawal of the 1099.

TMF ExRO
Phil Marti
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