WHAT IF I DID DAMAGE TO A COMPANY CAR AND THEY TOOK IT OUT OF MY PAY. CAN THAT BE A DEDUCTIBLE?

Forum|Forum|5 years ago
July 22, 2020
3 replies
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TurboTax Self Employed Online

Texas Roger

Level 15

Work related expenses are not deductible for W-2 employees. If they reduced your pay and the reduction amount is not reported on your W-2, then you are not paying any taxes on the amount of the reduction.

Carl

Level 11

Even if the pay reduction was not reflected on your W-2, it's still not a deduction. It's no different than if you wrecked your own car and paid to have it fixed.

Opus 17

Level 15

@Carl11_2 wrote:

Even if the pay reduction was not reflected on your W-2, it's still not a deduction. It's no different than if you wrecked your own car and paid to have it fixed.

However, in some states it may be illegal for your employer to charge you for damage you cause at work. You may want to check with your state's labor department.

Anonymous

Was the car used in the business in which you are self-employed? if this is the business where you are self-employed does the company charge you for use of the vehicle? did you carry auto insurance covering use of this vehicle? As an employee, the charge for the damage would not be deductible. As an independent contractor for the company, the charge might be deductible. However, you probably do not want to raise the issue of the company misclassifying you as an IC when they should be classifying you as an employee.