Markup on reimbursable meals from a 1099 contractor

Jantco · #1 (**permalink**) 10-13-2010, 03:09 PM

Normally I would not include reimbursed meals or travel on a 1099 to a contractor, but how should it be handled if the contractor marks up those charges?

TaxGuru · #2 (**permalink**) 10-14-2010, 12:22 AM

You should pay the Contractor the amount per his or her invoice and let them determine how the amount received can be offset against their own travel adn meal expenses.

As far as you are concerned, you report to the IRS on the 1099-Misc the amount paid to contractor that includes the meals or travel.