We receive funding through our state MH/MR office for respite care for our special needs daughter. We went on vacation over the summer and used an out of state respite provider. We payed the provider and then were reimbursed by our local respite provider (who in turned billed MH/MR). I received the 1099-misc, for my reimbursement expense, which means I need to report this reimbursement and pay taxes on it! I am not even sure who I should be contacting to fix this mess. Obviously, we should NOT be paying taxes on this amount.
I received 1099-misc for a reimbursement. It definitely was not income!?headache
You need to do a nominee 1099-Misc to the person you paid. That will show that you paid someone else. You can then report the 1099-Misc on a schedule C and then subtract the 2nd 1099-Misc as contract labor, bringing the net effect to zero.
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