Members of the Maryland Association of Certified Public...


March 29, 1995

Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.

Q: My husband traveled to North Carolina during 1994 for some job interviews and was reimbursed for his travel expenses. He then received a 1099-Misc form on which nonemployed compensation of $632.30 is listed. Where is this amount to be reported? Does he need to pay North Carolina taxes as well?

A: Reimbursements for expenses incurred in looking for new employment in your present field of work are generally not taxable if you accounted to the company for the expenses and were reimbursed. If this is the case, your husband should not be taxed on the reimbursement and he cannot deduct the reimbursed amounts. He should not have received a 1099-Misc for nonemployee compensation and should ask the North Carolina company to file a corrected 1099-Misc showing no income to him. He is not required to file a North Carolina tax return or pay any North Carolina tax on a tax-free reimbursement.

The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.

To submit a question, call Sundial, The Sun's telephone information service, at (410) 783-1800. In Anne Arundel County call 268-7736, in Harford 836-5028, and in Carroll 848-0338. Using a touch-tone phone, enter 6225 after the greeting. Push 1 to submit a tax question; state the question in full. Push 2 to hear a tax tip. Selected questions will be answered in the Business section. No questions will be answered by phone. Please leave your name and phone number.

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