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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13338
Experience:  15years with H & R Block. Divisional leader, Instructor
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A question about taxes and travel reimbursement. I have

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A question about taxes and travel reimbursement.

I have been working on the same project for almost a year, except for 3 weeks of non-work travel on two occasions, and 3 weeks working on a different project. I own a house in Nevada and work in California. I read, if I work on the same project for more than one year that I will have to pay tax on my travel reimbursement. Halfway through the year I changed from employed (W2) to self-employed (1099) on the same project. I will need to sign a new contract to stay with the project past one year.

Should I stop working on this project before a year has passed to avoid having to pay about $8000 tax on the reimbursements? Or will signing a new contract be enough?

Robin D :

Hello and thank you for using Just Answer,
The IRS says that a considerable time would need to pass. Many feel this is 3 months between assignments to the same area. Signing a contract would not generally be enough if you were audited.

Customer:

Ok. Thank you.

Robin D :

You are most welcome

Robin D :

Your positive rating is always thanks enough.

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