self-employed travel with reimbursement?

Whatever you charge your client(s) to provide your product/service is gross income to you, and most likely deductible to them. Reimbursements only apply to employees.

-Mark Bole

Well, not exactly. According to RIA Checkpoint, an independent contractor handles expense reimbursements about the same as an employee...

===========================================================Independent contractor accounts for the expense. If an independent contractor accounts to his client for the expense, and is reimbursed for it, the expense and reimbursement are not taken into account by the independent contractor (because the expense is the client's, not the independent contractor's). The client may deduct the expense, if it is otherwise allowable. If the reimbursed expense is entertainment-related, the client is subject to the restrictions on deduction of meal-and-entertainment expenses.

37 For these rules to apply, the reimbursed independent contractor must substantiate each element of the reimbursed expenses ( ¶ L-4705 ) by adequate records ( ¶ L-4616 et seq.) or by his own statement supported by sufficient corroborating evidence ( ¶ L-4626 et seq.). 38 ============================================================= Thus, if Joe Shmoe bills his client and submits receipts, and is reimbursed dollar for dollar, the expense reimbursement should not be included in the 1099.

Don't mean to challenge you on this point (have no competence to do so).

But I've been providing occasional technical consulting services to large firms for many years now (pre- and post-retirement as university faculty member); submitting invoices which separated out and subtotaled Consulting Services (billed at an hourly rate) and Travel Expenses (itemized and with supporting receipts attached); been paid generally with a single check for the total invoice; and in the vast majority of cases received year-end 1099-MISCs which reported the Consulting Services amount only, which I duly reported on my returns. (In the few exceptions where the 1099-MISC reported the total amount, Consulting plus Travel, I deducted the itemized travel costs as business expenses in the appropriate subcategories on Sched C.)

If the usual approach is not legally valid, the firms and I both seem to be misinformed about this. Net tax paid is of course the same either way.

And that's why I believe what you're doing isn't correct.

There are some travel costs (like meals) which are not 100% deductible by a sole proprietor.

So if you simply don't report the meals reimbursement (vs. reporting the reimbursement and then taking the only 50% deduction that's allowed), you're in effect getting a larger deduction than you're entitled to.

-- Rich Carreiro snipped-for-privacy@rlcarr.com

Challenges more than welcome, that's how I learn.

Chapter 6 in Pub 463 has a section "Rules for Independent Contractors and Clients" which contradicts what I said as it pertains to travel, gift, and entertainment expenses, so I stand corrected on that. I don't believe any other types of "expense reimbursements" for a non-employee would fall under this category, however.

As to the other part of the OP's question, if he is deducting standard mileage for travel (not transportation -- see Pub 463) and getting "reimbursed" for gasoline, those payments would be reportable income.

-Mark Bole

Good point. Regarding the person who reimbursed you (ie. the employer), do they get the full deduction or 50%?

Per my previous reply check Pub 463. One side or the other of the transaction has the 50% limit.

-Mark Bole