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**taw and zsa** accounting question

DG1DG1 member
Ninth Anniversary 5000 Comments 25 Love Its Name Dropper
in Wedding Woes

OK, it's a tax question, but a mild one. I don't think either of you technically do taxes, so do tell me to fuckoff if you want. :)

How does one handle reimbursed expenses? Like, I shell out the money but the client reimburses me? Do I report the expense as an expense and the reimbursement as income? Or do I just report neither since they should cancel each other out?

I'm guessing this depends on if/how the client is supposed to report that payment to me. It seems like it shouldn't be income.

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Re: **taw and zsa** accounting question

  • zsazsa-stlzsazsa-stl member
    Eighth Anniversary 5000 Comments 100 Love Its First Answer
    If you just reimbursed dollar for dollar (no mark-up) I don't think you count it as income, but let me check if you have to show it some other way.
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  • tawillerstawillers member
    Ninth Anniversary 5000 Comments 500 Love Its Name Dropper

    I can't answer this for you.  Thank goodess for zsa!

    Man I wish I went to school to become an accountant.  I think about it every day.  ::glaring at unused ed psych degree::

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  • 6fsn6fsn member
    Knottie Warrior 10000 Comments 500 Love Its Name Dropper
    When we got reimbursed for boots, travel, etc it wasn't reported as income and wasn't taxed.  I'm no expert, but I'd think it would be tax free.
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  • zsazsa-stlzsazsa-stl member
    Eighth Anniversary 5000 Comments 100 Love Its First Answer

    If you are an employee and your employer is reimbursing, there is no tax effect.  But DG, this is a schedule C, right?  Now I'm thinking it is the other way otherwise your 1099s from your customers would be off.  In short, don't listen to me. :)

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  • DG1DG1 member
    Ninth Anniversary 5000 Comments 25 Love Its Name Dropper

    Right. Schedule C.

    urgh. I guess I have to write to my real tax guy.

    Thanks, though!

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  • zsazsa-stlzsazsa-stl member
    Eighth Anniversary 5000 Comments 100 Love Its First Answer

    I'm on the phone with a co-worker who did taxes for years.  She said if the reimbursement is reported on a 1099 you should include it in income and expenses.  If they didn't include it on your 1099 you can go either way because it won't change your bottom line and for a schedule C any tax calculated is only on the bottom line.

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