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That comment/instruction assumes that you aren't including the expenses in your revenue.
For the attorney's I represented in the past; I just included an expense for the reimbursed expenses with a caption like this:
"Reimbursed client expenses included in revenue"
It can be abbreviated as follows:
Reimb clt exp incl in Revenue
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On my Schedule C, I have included the reimbursed costs as part of my business itemized expenses since my clients include the total in their 1099
Yes, that's exactly what I suggested that you do. Otherwise you would have to include a reconciliation of the 1099 totals to the revenue you are actually reporting. Also, reconciling items would include revenue that you received and included on your Schedule C for receipts that had no corresponding 1099. So, it is much easier just to include the reimbursed expenses as an expense item as they have already been included in revenue.
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