" We have communicated in the past but I have another question or two. How do we list what we actually spent out of our own pockets and that gets reimbursed? Is this taxable income since it was ours to begin with and taxed once already ? I have made a spread sheet up for total yearly income by company and another one for total yearly reimbursed expenses by company to try to gleen a better idea of actual income. Even having done so, I am still lost with how to list it on the schedule C form."
" List the FEEs you make on Schedule C, Line 1. List the REIMBURSEMENT FOR EXPENSES, on a supporting statement, on Line 6. Then list the REIMBURSED EXPENSES on Line 48. That' s the collection of blank lines at the bottom of the Schedule C, page 2. "
Q: " Also, how should I mark line F on schedule C? Cash, Actual, other? I am not sure what this means and their explanation leaves me wondering even more. "
A: " This is a technical point. We usually flag OTHER and write in HYBRID. This means that you count the money you received when you have it in your HAND. You count the expenses you incurr when you incurr them whether or not you' ve paid them yet.
However, cash method will do fine."
Q: " I am trying to get all my " eggs in a row" so that I can get this filed and out of my face. Thank you for your invaluable help. Hopefully next year will be much better."
A: " It' s a new skill. You' ll get better at it. Think of it like learning to play Tennis."
Hope this helps!
This is what I was talking about: (Sharon Riley an accountant' s advice)