How to exclude Reimbursements from Box 7 of a Contractor's 1099-MISC

danielcambron

I have contractors that I pay by creating a 'bill' from a 'vendor' in Wave. In this bill, I report what I owe to the contractor for services rendered, and I also report and reimbursements I need to pay out to that contractor for instances where, for example, the contractor had to get something from Home Depot on my behalf but he used his personal card.

I would like the 1099-MISC form that wave generates to not include those reimbursements because they are not 'income' from the Contractor's perspective. However, it appears that wave is simply totaling the value of all of the bills from that contractor in order to generate the 1099-MISC.

From what I figure, I can either tell the contractor he needs to deduct those reimbursements on his own taxes, or perhaps I can create a liability account for reimbursements and handle reimbursements outside of the vendor bill system.

Does wave offer any better option for handling this?

AlexL

Hey @danielcambron . You already have this one right on the ball. The way that Wave generates 1099-MISC forms is by lumping all of the bill amounts together that are listed under the specific contractor. This means that we don't handle these reimbursements in your desired method in the 1099, so you'll have to find another way to do it (perhaps asking the contractor to make the deductions himself?)