1099-Misc for Employee Expenses

[Acownt4it]

TP came in today with a 1099-Misc classified as Rent payments. These rent payments are to reimburse the TP for home office expenses.
Has anyone filed a Schedule C for this? Or is the TP out the utilities, insurance, repairs deductions because he does not reach the 2% AGI limitation?
TP never has to go into the office, he works strickly from his house to client sites. He is a field tech engineer.
Just hoping to help them out alittle.

[Mark Goldberg]

A mess

If an employee is paid money for rent they report the income on Scheudle E with no deductions. Hpofully the employer did not call it non employee compensation when it was rent. You are not allowed to claim deductions in this situation. The better way to do this is, the employee submits reciepts to the employer under an accountable plan and then it is non taxable income.

[Acownt4it]

I agree

with you regarding how the employer should pay this out. Unfortunately the employer changed their policy and this is how they are compensating their employees that work out of their homes. The did call it rent, sorry for the confusion.
The employer gets full benefit and the employee gets to pay additional taxes. Nice of the company. I will discuss this further with my client to see if maybe he can this changed.

Thanks for your input, I think too long on these things and I make it more complicated for myself than it should be.