For a University Internship my daughter received $6100 in advance to cover all expenses, and her minimum pay. It was reported on a 1099-MISC as #3- Other Income. Can this be treated as 'contract labor', or such, and can the air fare, car rental, and living expenses, et al, to Canada be deducted as line items? Or?

Thanks!
Bruce

Generally speaking, your daughter would be entitled to deduct any reasonable and necessary expenses incurred in connection with the internship income earned (self-employment 1099-misc income). Thus, if she had to travel to Canada, that would expense would be deductible, along with the car rental and all other related expenses directly related to her working in Canada.

These expenses would be deducted on Schedule C of your daughters 1040 Individual Income tax return.

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