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Including or Excluding Vendor Expenses on Form 1099
October 8, 2025
Q. What is the best practice regarding expenses? Should they be included in the $ amount remitted on the 1099 to a vendor or excluded?
A.
(Answered by IOFM's third-party tax expert)
It depends on what type of expenses you are reimbursing and whether the contractor provides you with proper documentation to meet the "accountable plan" rules.If you're reimbursing for a part or supply used in the contractor providing their services to you, then this is included as contract labor and reported on…
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