Hi! I am a self-employed travel agent. I work through a "host" agency, through which I do my bookings. I received a 1099 from my host agency with my commissions on it. Obviously, I treat this as business income.

I booked a trip for 2 teachers to accompany students to a competition. The Board of Education paid me the cost of the trip and I made the arrangements. I received a 1099-misc from the Board of Education, but I believe this is incorrect. Should I treat this also as income and claim the cost of the trip then as an expense, or should I ask them to provide a corrected 1099 to me showing $0?

Thanks for any help you can provide!

If the Board of Education 1099 represents income already covered by the host agency's 1099, then reflect that on your Schedule C.

If the IRS challenges this, it should not be too hard to show this by requesting a detailing accounting of your account from the host agency.

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Originally Posted by AtlantaTaxExpert

If the Borad of Education 1099 represents income already covered by the host agency's 1099, then reflect that on your Schedule C.

If the IRS challenges this, it should not be too hard to show this by requesting a detailing accounting of your account from the host agency.

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I'm not sure I am following you. I should claim the 1099 as income (even though it was a payment for a trip, not income) and then show a reduction on my Schedule C? How would I do that and what would I categorize the reducation as?

Should I ask the Board of Ed. To correct it on their end?

I assume that when you received the money from the Board of Education, you paid your host agency for the costs of the trip, and received a commission from the host agency.

The commissions are your income that you report on the Schedule C.

You could have avoided this problem by returning the money to the board and tell them to pay it directly to the host agency. Regardless, you were merely a conduit for the money received from the Board to the host agency.

That money is NOT income to you, and should not be reported as such.