Kit fee

[Allthethings]

Hi folks,

Last year, I had a short job working for a company from a Wednesday to the following Sunday. They paid weekly with a week end on Saturday, so technically this was two pay periods.

Anyway, we agreed that I was getting paid X for a 10 hour day, so when I worked 12 hours one day, they said they were adding a $50 box rental fee to the 2nd paycheck rather than pay out the overtime. They said it wasn't taxable, but I'm pretty sure this is supposed to be taxable? In my start paperwork, I didn't substantiate a kit rental (though I did use my personal computer throughout the gig).

The W2 I have received from them makes no mention of this $50. Where should I report this on my taxes? I want to be honest that I received this $50, but I'm not sure where to do so.

[Opus 17]

If you are a W-2 employee, then everything of value that you receive from working is part of your taxable income and should be reported on your W-2.

However, this does not include legitimate work related expenses that your company reimburses you for under an accountable plan.  The company is also allowed to provide what is known as a “working condition fringe benefit“ that is tax free to you for expenses that would otherwise be deductible if you were able to deduct them as an employee.  It’s not clear to me from your description whether the extra $50 would be considered taxable income, or a work condition fringe benefit, or an accountable reimbursement.

If you believe it should be taxable, then you can enter it in the other income or uncommon income section as miscellaneous income.

[Allthethings]

Thanks for the reply @Opus 17. I do think it's supposed to be taxable income because as I said, it's because I worked 2 extra hours one day, they just coded it as a box rental so no taxes were taken out initially. (Though, tbh, I was surprised they paid me for a full day on the Wednesday because it was a half day.)

I'm not sure if there was an accountable plan. I didn't have to do any reporting on the receiving of the $50. I'm also not sure if it's a "working condition fringe benefit" because it's my personal computer. Not all of my uses of the computer are for work.