Services Requiring Tax Reporting

A list of common services requiring tax reporting includes, but is not limited to:

  • Advertising
  • Architectural Services
  • Artwork (if commissioned by ISU)
  • Catering Services
  • Cleaning Services
  • Conference Registration Fees
  • Consulting Services
  • Construction Services (Electricians, Painters, Plumbers, etc.)
  • Courier Services
  • Delivery Services
  • Dental Services
  • Design Services
  • Directors' Fees
  • Drafting Services
  • Dry Cleaning Services
  • Editing Services
  • Employment Agency Services
  • Engineering Services
  • Entertainment Services
  • Grant Writing Services
  • Honoraria
  • Landscaping Services
  • Laundry Services
  • Legal Services Provided to ISU (Also see Payments to Plaintiffs below.)
  • Maintenance Services
  • Medical Services (including Counseling Services)
  • Membership Dues (only if the payee is for-profit and unincorporated)
  • Pest Extermination Services
  • Photographic Services
  • Printing or Photocopying Services
  • Proofreading Services
  • Registration Fees (only if the payee is for-profit and unincorporated)
  • Rental Payments
  • Repair Services
  • Royalty Payments
  • Shipping or Delivery Services
  • Speaker or Guest Lecturer Fees
  • Subcontract Payments (only if the payee is for-profit and unincorporated)
  • Surveying Services
  • Towing Services
  • Translation Services
  • Transportation Services (Taxis and Limousines)

Services Exempted from Tax Reporting

  • Freight or Shipping Charges on an invoice
  • Payments to a moving company
  • Utilities (Cable or Satellite TV, Electricity, Garbage, Internet, Natural Gas, Telecommunications, etc.)

Other Payments Requiring Tax Reporting

  • Awards, Gifts, or Prizes (if $100.00 or above)
  • House-Hunting Expenses Reimbursed to Employees (Reported on a W-2, rather than a 1099-MISC.)
  • Internships (Internships and Experiential Learning programs approved by the Provost's Office for payment on a Supplier Invoice will be reported on a 1099-MISC. Payments to nonresident aliens will be reported on a 1042-S and will require 30% withholding.)
  • Lease Payments
  • Lodging (Hotels, Motels, etc.)
  • Moving Expenses Reimbursed to Employees (Reported on a W-2, rather than a 1099-MISC.)
  • Payments to Plaintiffs for Interest, Punitive Damages, Emotional Distress, Employment Discrimination, or Injury to Reputation
    • (Payments to plaintiffs for physical injury, medical expense reimbursement, or property damage claims are not reportable. See IRS Publication 4345 for additional information). 
  • Payments to Research Subjects (if $100.00 or above)

Travel Reimbursements Requiring Tax Reporting

Travel reimbursements generally do not require tax reporting but some exceptions are:

  • Reimbursement for an employee's individual meals when not in overnight travel status is reported on a W-2 form, unless the employee indicates the primary purpose of the meal was to discuss business with a non-university employee.
  • Reimbursement of living expenses (lodging and meals) is reportable if the assignment is expected to last more than a year. Assignments of a year or less do not require tax reporting.
  • Reimbursement of travel expenses that does not comply with the IRS Accountable Plan Rules would require tax reporting.

Disclaimer: The information above is not intended as legal advice. Please refer to www.irs.gov for additional information. Iowa State University does not provide assistance with the preparation of tax returns.