W2 Says $50K. Really only made $40K. Why were reimbursements for my business miles paid counted as income? Even if I broke even. - cost $10K and reimbursed $10K - I am not paying social security taxes, state and federal income tax on the $10K.
How do I deduct the $12K I really spent (gas/insurance/repairs) so that it offsets the $10K and reduces state/fed/fica?
Thank you.
Starting in tax year 2018, you can no longer deduct employee expenses, including mileage and/or automobile expenses.
Even in previous years, the deduction was limited to being an itemized deduction, subject to the 2% of AGI threshold.
Should the $10K have been reported as Income? It depends on how your employer handles it. If he pays you a set amount (for example $500 per month) without making you account for how you spend it, then yes he is supposed to include it as taxable income on your W-2, in box 1.Starting in tax year 2018, you can no longer deduct employee expenses, including mileage and/or automobile expenses.
Even in previous years, the deduction was limited to being an itemized deduction, subject to the 2% of AGI threshold.
Should the $10K have been reported as Income? It depends on how your employer handles it. If he pays you a set amount (for example $500 per month) without making you account for how you spend it, then yes he is supposed to include it as taxable income on your W-2, in box 1.