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Deductions & credits
The employer does it this way to avoid paying FICA taxes on extra wages and they get away with it because there is this glitch in the tax law. Sad thing is unless the taxpayer chooses to put this on a Sch C there is no way to deduct the costs of the vehicle or the equipment/tools. corrected info by @Hal_Al below
‎January 8, 2023
6:53 AM