Ira - in one of his pay statements, it says Batch pay includes delivery distance ($0.60/mi). So although the 1099 may not have a breakdown, doesn’t this statement mean he can’t deduct mileage as an expense?
Not Ira, but I would say that the paycheck notation is consistent with what Ira said:
If he is considered self-employed, the company will report its gross payments to hime via 1099-NEC. This amount will include all money given to him for whatever reason without any breakout of intended purpose.
It is his responsibility to track allowable expenses and deduct them against the reported income on Schedule C.
It appears that the gross payment (“Batch pay”) in the paycheck includes mileage reimbursement at $0.60/mile. That means that his 1099-NEC will include those payments for mileage as part of his compensation, since it was included in his paycheck. As long he has tracked the business specific miles for his car, on his Federal return, he is allowed to deduct the 2021 mileage expense at $0.56/mile as a business expense on his Schedule C. If he doesn’t do so, he will be paying taxes on the full mileage reimbursement. Note that he will have to pay taxes on the excess $0.04/mile that he was reimbursed over the allowable Federal limit.
AJ