The form 1099 is required to be prepared by a contractee (you) and ha to be given to the person ( the contractor ) who performed the job. Basically .1099 denotes how much money was paid for the service. The mileage reimbursement is certainly an income for the contractor, therefore reporting on the said form 1099 is a legal obligation. It must be added that the contractor, being a self-employed person can write off the mileage expense as a business expense. It depends on the type of mileage expenditure incurred by him/her and has to calculate the allowable mileage based on IRS mileage standard rate
Prashant Thakur Changed status to publish February 11, 2020