How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask R. Klein, EA Your Own Question

R. Klein, EA
R. Klein, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 2880
Experience:  Over 20 Years experience
Type Your Tax Question Here...
R. Klein, EA is online now
A new question is answered every 9 seconds

If my union (not my employer) provided me with a lump sum to

Resolved Question:

If my union (not my employer) provided me with a lump sum to cover travel/lodging/transportation to attend a conference and I spend it all but didn't keep all receipts, does the union need to provide a 1099 or w2 saying this lump sum was income?
Submitted: 1 year ago.
Category: Tax
Expert:  R. Klein, EA replied 1 year ago.

Randalltax :

You should receive a 1099-MISC from the union if the total of the amount given exceeds $599 in a calendar year.

Randalltax :

This is considered taxable income.

Randalltax :

However, you COULD deduct your actual expenses on Schedule A, subject to the 2% of your AGI reduction. Depending on your income, this may wipe out the deduction altogether.

Randalltax :

The income would go as Other Income on your tax return, and is NOT subject to SE tax, just income tax.

Randalltax :

Receipts for lodging and travel (airfare, etc) should be kept to prove any deduction. Meals and incidentals less than $75 each don't require a receipt, but you should keep track of the expenditures and the business purpose nonetheless. Of course, if you are not taking a deduction, then receipts aren't needed.

Expert:  R. Klein, EA replied 1 year ago.
Our chat has ended, but you can still continue to ask me questions here until you are satisfied with your answer. Come back to this page to view our conversation and any other new information.

What happens now?

If you haven’t already done so, please rate your answer above. Or, you can reply to me using the box below.
Customer: replied 1 year ago.
If receipts are provided to the union and it covers the lump sum amount provided, then are they still required to provide a 1099? or would it be considered reimbursement?
Expert:  R. Klein, EA replied 1 year ago.

If receipts were provided and you accounted for your expenditures to the union, then no 1099 required and it is not income because the union can substantiate the expense.

 

The whole key is whether the union's plan was "accountable" or "non-accountable". The union could do it either way. If "accountable", this means you must substantiate your expense and it is not taxable income to you. You would need to ask the paymaster at the union how they set you up.

 

 

Customer: replied 1 year ago.

Thanks. Some have receipts, others don't.


For taxi expenses paid in cash, is it common to be able to provide a written affidavit of expenses along with actual receipts for airfare and hotel?

Expert:  R. Klein, EA replied 1 year ago.

meals & incidentals follow the same rules (MI&E) which is to say no receipts unless the purchase is over $75. A statement or expense report is sufficient.

Customer: replied 1 year ago.

Ok...last question: :-)


 


If the lump sum was $1400 and the individual has actual receipts for $1250 and union rejects a written statement of transportation expenses, the $1250 would be sufficient due to the fact the non-receipted amount would be less than $599? and not require the union to provide a 1099 for the remaining $150?


 


Thanks, XXXXX XXXXX your assistance.


 

Expert:  R. Klein, EA replied 1 year ago.

Again, a lot depends on whether the union gave you the money and just asked you to substantiate that you actually used it, or if the union has an "accountable plan". That is an accounting term.

 

Because I don't know what the union told you when they gave you the money and I don't know the union specifically, I can't answer your question with accuracy. You will need to ask the union's paymaster on this.

 

Either the union writes it off as a travel expense of its member or they gave it to you as compensation is a business decision of the union. It's totally discretionary by the union how they handle it.

 

 

 

Customer: replied 1 year ago.
It wasn't clear. It was a lump sum to cover expenses. Small association (not an AFL-CIO affiliated union) who has never done this before. Thanks!
Expert:  R. Klein, EA replied 1 year ago.

What isn't clear?

 

My answer does not depend on whether the union is AFL-CIO or any other affiliation.

It depends on YOUR union's accounting policy.

 

GENERALLY SPEAKING, if they gave you a lump sum in advance, then a 1099-MISC will follow for the FULL amount.

 

Customer: replied 1 year ago.

Sorry..."not clear" was referring to the union's expectations at the time. Now they are asking for receipts, so I will have to assume they are using the "accountable" plan.


 


I think the only remaining question is assuming it is an accountable plan, with $1250 actual receipts...and a written statement of transportation expenses that may not be acceptable to the union...would they do a 1099 for the $150? or could they ask for that $150 to be paid back?

Expert:  R. Klein, EA replied 1 year ago.

They have the same rule as you as a taxpayer. They are not required to substantiate the little stuff.

 

R. Klein, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 2880
Experience: Over 20 Years experience
R. Klein, EA and 5 other Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.