Where do I deduct a payment from my employer that was actually a reimbursement to me in 2019 for required malpractice insurance which I originally paid out of my pocket. The reimbursement which was paid to me was included under Wages, Tips, Other Compensation on the 2019 W-2. Now I am paying taxes on that amount which needs to be deducted from my income so I am not paying taxes on an amount which originally came from me.
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Sorry, you can’t deduct work-related expenses if you are a W-2 worker. Your employer may reimburse you tax-free if they to agree your ordinary and necessary work expenses, but they are not required to, unless that is part of your agreement or contract with them. Your employer would have to issue a corrected W-2 that removes the reimbursement from your taxable income.
Can I simply deduct that amount from the W-2 as I have documentation that this amount was a reimbursement?>
No. As long as the employer is treating it as taxable income that’s what it is. W-2 employees have no recourse to deduct work related expenses since 2018 tax reform, and even before, the deduction was limited and not very useful for most people.
Not the answer I was hoping for, but "it is what it is!" (I dislike that expression...)
Well thanks very much for your help. You truly are a champ.
Have a great remainder of the Weekend, Opus17.
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