Any ideas on how a TP can count expenses incurred while receiving a taxable grant (reported on 1099)? TP had away from home expense associated with the grant. I'm unsure on how to get the benefit of the expense deduction. THANKS for ALL your INPUT.
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Grant Expenses
Let's assume the 1099 is miscellaneous and not non employee comp.
If the grant proposal has budgeted expenses then these can be deducted above the line.
In this case I would put the income on line 7 and the budgeted expenses as a negative amount on line 21.
If the expenses are not deliniated in the proposal then they are a miscellaneous 2% deduction. Here I would probably put the income on line 21.
If the income is deemed to be self employment, then all expenses go on Schedule C.
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