Hi,

I am receiving travelling expenses from my client and they are paying by checks.
They told me that they are going to report it to IRS.

Is it OK if I show that as expenses while filing the returns?

Your answer is highly appreciated.

Thanks,

Durga

Durga:

If you know that the expenses will show up on your W-2, you should claim the expenses as employee business expenses on Form 2106 and Schedule A.

Hopefully, they will show the income on Form 1099, in which case you can show the Form 1099 income on a Schedule C and show offsetting expenses to totally negate the income. That way, it's a wash.

Claiming employee business expenses on Schedule A requires you itemize, plus there CAN be Alternative Minimum Tax issues.