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R. Klein, EA
R. Klein, EA, Enrolled Agent
Category: Tax
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Experience:  Over 20 Years experience
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If my union (not my employer) provided me with a lump sum to

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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?

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.

Customer: replied 4 years 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?

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 4 years 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?

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 4 years 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.


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 4 years 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!

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 4 years 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?

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


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