Do you, as an Employee, Spend Money to Perform Your Job?

Most employees incur expenses to do their jobs.  You might drive for your job or use your cell phone or home internet or maintain a home office.  You, as an employee, have no way to deduct these un-reimbursed expenses on your individual tax return (those deductions go wasted).  Instead, consider asking your employer to replace part of your wage with an expense reimbursement.  Example:  If you earn $50,000 and incur $5,000 of un-reimbursed expenses (driving, cell phone, internet, supplies, home office), then you pay FICA tax and income tax on $50,000.  If you ask your employer to instead pay you $45,000 as a wage and $5,000 of reimbursement, then you now pay FICA tax and income tax on $45,000 even though you are still being paid $50,000…saving you $1,200 of tax/year.

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