I was employed with Company A and worked as a contractor for Company B. I have been submitting my travel expenses to company B directly and not my employer since Company B wanted me to do so. Now Company B has sent me a 1099-MISC with an amount in box 7 (non-employee compensation) totaling the travel expenses incurred on the project that I worked on for Company B.
How do I file taxes in this case and would this 1099-MISC be treated as my income and if so then will I possibly be owing more taxes? Since this compensation being expense reimbursements and not my income as such, I should not be owing more taxes.
Please enlighten.

You would have course have the reciepts for your travel expense that you use as a business deduction when you file your taxes But your income from Company B is additional income

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Originally Posted by Fr_Chuck

You would of course have the reciepts for your travel expense that you use as a business deduction when you file your taxes But your income from Company B is additonal income

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I do have all the receipts. I am on an H1 visa the income from company B are only expense reimbursements. Would that still be the income?

You are independent contractor. You will report your income and expenses on schedule C or C-EZ (Form 1040). That is you will report 1099-misc income and your travel expenses. Net income is subject to SE tax at 15.3%. Read: Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor

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Originally Posted by MukatA

You are independent contractor. You will report your income and expenses on schedule C or C-EZ (Form 1040). That is you will report 1099-misc income and your travel expenses. Net income is subject to SE tax at 15.3%. Read: Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor

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I am employed with Company A as mentioned before and not an Independent contractor. I am confused. And 15.3% tax on the expense reimbursements?

Even though you are an employee of Cpmpany A, the Form 1099-MISC from Company B mandates the filing of a Schedule C to account for that 1099-MISC income.

If your travel expenses matches the amount of income reported on the Form 1099-MISC, then the net income from the Schedule C wll be ZERO, and no Schedule SE will be needed.

I know this sounds complex, but this IS the correct way to deal with this matter.

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Originally Posted by AtlantaTaxExpert

Even though you are an employee of Cpmpany A, the Form 1099-MISC from Company B mandates the filing of a Schedule C to account for that 1099-MISC income.

If your travel expenses matches the amount of income reported on the Form 1099-MISC, then the net income from the Schedule C wll be ZERO, and no Schedule SE will be needed.

I know this sounds complex, but this IS the correct way to deal with this matter.

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Yes. I spoke to the accountants and I figured this was the correct way. But after a deeper investigation we found that the 1099 in concern should have had 0$ amount on it. Also this 1099 was originally to be sent to my employer and not me. I now have obtained a corrected 1099 with 0$ and filed taxes with the corrected 1099.
Thanks for all the help and thoughts and inputs you all have put in for me. I really appreciate and will come back here for all my tax questions.

Glad to help!