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.