1099-MISC question

[Cheryl Rein]

I have a 1099-MISC from a retired fireman which indicates income in box 9 (Other Income) of $1008.00. However, an attached letter from the county specifically states that this income is NOT TAXABLE because it is a reimbursement for health care expenses. Do I skip it and take my chances? Do I call the county and have them do an amended 1099 (they probably won't - nobody ever does)? Or should I have them pay taxes on it just to be safe? They were not able to itemize, so their health care expenses were never deducted. It seems to me that a reimbursement for expenses would definitely not be taxable.

Thanks in advance for your help.

Cheryl

[Brian EA]

I have a 1099-MISC from a retired fireman which indicates income in box 9 (Other Income) of $1008.00. However, an attached letter from the county specifically states that this income is NOT TAXABLE because it is a reimbursement for health care expenses. Do I skip it and take my chances? Do I call the county and have them do an amended 1099 (they probably won't - nobody ever does)? Or should I have them pay taxes on it just to be safe? They were not able to itemize, so their health care expenses were never deducted. It seems to me that a reimbursement for expenses would definitely not be taxable.

Thanks in advance for your help.

Cheryl

I can't find a box 9 on 1099misc. It's a check box

[Cheryl Rein]

1099 Problem

Sorry for the error - the amount is in Box 3 on the 1099, Other Income

[Bees Knees]

Enter the amount on line 21 and identify with the EIN of the 1099. Then enter it again as a negative number to cancel the income out and identify it as a Section 105(b) excludable medical expense reimbursement.