I'm dealing with a very similar situation right now! My husband had job interviews with two different companies last fall, and both reimbursed him for travel expenses. One company handled it correctly and didn't issue any tax forms, but the other one just sent us a 1099-MISC for $890. Reading through all these responses has been super helpful. I think I'm going to try calling their accounting department first to see if they'll correct it, but if not, the approach of reporting it on Schedule 1 and then taking the offsetting deduction with documentation seems like the way to go. One thing I'm wondering though - since this was for a job in the same field my husband currently works in, would these expenses potentially qualify as job search expenses once the miscellaneous deduction suspension ends in 2026? Or is the reimbursement/offsetting deduction approach always the better way to handle it regardless of the job search deduction rules? Thanks everyone for sharing your experiences - it's really reassuring to know this isn't just us dealing with this confusing situation!

I just went through almost this exact scenario last month! The company initially refused to correct the 1099-MISC, but I didn't give up. Here's what finally worked: I escalated beyond the accounting department and reached out to their tax department (if they have one) or the CFO's office directly. I sent a polite but detailed email explaining that issuing a 1099-MISC for expense reimbursements creates unnecessary tax complications for both parties and could potentially expose them to issues if the IRS questions their reporting practices. I included copies of all my receipts showing the expenses were legitimate business costs they reimbursed, not compensation. The key was framing it as helping them avoid potential compliance issues rather than just asking for a favor. It took about two weeks, but they ended up issuing a corrected 1099-MISC showing $0 and sent me a letter confirming the correction. Sometimes persistence pays off, especially when you approach it from a business/compliance angle rather than just personal inconvenience. If that doesn't work though, all the advice here about the Schedule 1 offsetting deduction is spot-on. Just wanted to share that companies can sometimes be convinced to do the right thing if you approach it strategically!

Farrier here too! The way my accountant explained it to me: since our trucks are essentially mobile workshops and we have legitimate home offices where we maintain equipment and do business tasks, the drive to first client and from last client counts as business miles. BUT - and this is important - if you stop for personal errands on your way to the first client or on your way home from the last, those portions become personal miles. So if you drop kids at school or grab groceries on your way, make sure to separate those. I track everything with MileIQ and it's been a lifesaver. Worth every penny because it automatically detects drives and lets me classify them with a swipe. Last year I legitimately claimed over 22,000 business miles!

Great question about actual expenses vs standard mileage! I've been doing farrier work for about 8 years and have tried both methods. Here's what I've learned: The standard mileage rate (67 cents per mile for 2024) is usually better for most farriers unless you're driving a really expensive truck or have unusually high maintenance costs. The standard rate already includes gas, insurance, maintenance, depreciation, etc. However, if you're hauling a heavy trailer with anvil, forge, and all your equipment, or if you drive a large diesel truck that gets poor mileage, actual expenses might work out better. You'd need to track everything - gas, oil changes, repairs, insurance, registration, depreciation, etc. The catch is that once you choose actual expenses for a vehicle, you're stuck with that method for the life of that truck. With standard mileage, you can switch back and forth each year. I'd suggest calculating both ways for a month or two to see which gives you better deductions. Most farriers I know stick with standard mileage because it's so much simpler to track and usually comes out ahead anyway. Also remember - whichever method you choose, you can still deduct tolls and parking fees separately on top of either the mileage rate or actual expenses!

I had a similar issue last year. Turns out there was a discrepancy in my reported income. Double-check all your documents to make sure everything matches up. It could save you a headache later!

I went through something similar a few years ago. One thing that helped was creating a paper trail by sending everything certified mail with return receipt requested. That way you have proof they received your correspondence. Also, if you have a local Taxpayer Advocate Service office, they can sometimes help escalate your case if you've been waiting an unreasonable amount of time. The IRS is supposed to process returns within a certain timeframe, and if they don't, the Advocate can step in. Hang in there - it's frustrating but it will get resolved eventually!

Slightly off topic but congrats on having six figures in savings! That's impressive. Just make sure that money is working for you efficiently. At current high yield rates that's great, but you might want to look into I-bonds or CDs for portions of it if you don't need immediate access to all of it. Some CDs are paying even higher rates than savings accounts right now and the tax treatment is the same.

Great question Sofia! I went through something similar when my savings account started earning significant interest. One thing that really helped me was setting up automatic transfers to move a portion of my interest earnings into a separate "tax savings" account throughout the year. For your $5,500 projected interest, you're probably looking at owing around $1,100-1,400 in additional federal taxes depending on your bracket. I'd recommend adjusting your W4 withholding as others mentioned - it's much easier than remembering quarterly payments. Also, keep detailed records of all your interest statements throughout the year. While the bank will send you a 1099-INT, it's good to track it yourself monthly so there are no surprises. Some high-yield accounts compound daily so the actual amount can vary from projections. One last tip: if you're consistently earning this much interest, consider whether you need all $120k immediately accessible. You might want to ladder some CDs or Treasury bills for better rates while still maintaining liquidity for true emergencies.

Can anyone recommend decent investment options for inherited IRAs? I'm in a similar situation and wondering if I should stick with target date funds or try something different since I have this 10-year timeframe.

This is a complex situation, but you're asking the right questions! One thing I'd add to the excellent advice already given is to consider the timing of your withdrawals strategically. Since you mentioned you have a small business and max out your SEP IRA, you likely have variable income year to year. Consider taking larger distributions from the inherited Traditional IRA in years when your business income is lower - this could keep you in a lower tax bracket overall. Also, don't forget about state taxes! Depending on where you live, state tax rates on IRA distributions can vary significantly. Some states don't tax retirement account withdrawals at all, while others treat them as regular income. For the brokerage account, one more tip: if you're planning to hold investments long-term, consider tax-loss harvesting opportunities. You can sell losing positions to offset gains elsewhere, which can be particularly useful if you're taking large distributions from the Traditional IRA that are pushing up your tax bracket. The 10-year rule gives you flexibility - you don't have to take equal amounts each year. Work with a tax professional to model different withdrawal scenarios based on your projected income over the next decade.