Tax question

[theiacowtipper]

I do my own taxes so I don’t have a "tax guy" and thought I’d ask here. I teach for a community college paramedic program. W2 income. We have a professional development program that reimburses us for things like conferences. I go to one nearly every year. They reimburse actual expenses, but it is counted as income. It goes on regular payroll. They say that the burden for determining tax deductibility falls on the employee. Seems silly but whatever.

I also teach for other ambulance services and fire departments. Very similar job. They pay me via 1099. So lies the question. I don’t have enough expenses to itemize. However, I can directly deduct expenses related to the 1099 income. But they didn’t reimburse me for the expenses. My W2 Jon did. However, the professional development applies directly to both types of work. Can I deduct the expenses of my conference directly from my 1099 income?

 

[Funky Bunch]

Sounds to me like your W2 is incorrect. Those reimbursements shouldn't be counted as income.

 

[theiacowtipper]

Sounds to me like your W2 is incorrect. Those reimbursements shouldn't be counted as income.

I’ve fought that fight. There’s nothing I can do.

 

[The Tradition]

I would think that you can deduct them but only if you have enough itemized deductions to overcome the standard deduction.

 

[theiacowtipper]

I would think that you can deduct them but only if you have enough itemized deductions to overcome the standard deduction.

That’s correct for W2 income but not 1099 income. Let’s say a company pays you 1000 to deliver a load of gravel. They issue you a 1099. You can take all your expenses off directly. fuel, mileage, whatever.

 

[hwk23]

Nontaxable Benefits Provided Under an Accountable Plan
Under an accountable plan, allowances or reimbursements paid to employees for job-related expenses are excluded from wages and are not subject to withholding. An allowance or reimbursement policy (not necessarily a written plan) is considered an accountable plan if:
1. There is a business connection to the expenditure.
2. There is adequate accounting by the recipient within a reasonable period of time.
3. Excess reimbursements or advances are returned within a reasonable period of time. IRC Section 62(c); Treas. Reg. Section 1.62-2(c)(2)

Business Connection
“Business connection” means the employee must have paid or incurred allowable business expenses while performing services as an employee. The reimbursement or advance must be payment for the expenses and must not be an amount that would have otherwise been paid to the employee as wages. Treas. Reg. Section 1.62-2(d)

Adequate Accounting
The employee must verify the date, time, place, amount and business purpose of expenses. Receipts are required unless the reimbursement is made using per diem rates (per diem rates are only available for certain expenses). Treas. Reg. 1.62-2(e), IRC Section 274(d) and Revenue Procedure (Rev. Proc.) 2011-47 Employees generally should have documentary evidence, such as bills, receipts, canceled checks or similar items to support their claimed expenses. This rule does not apply to:
1. Meal or lodging expenses that you reimburse on a per diem basis (discussed later), at a rate at or below the allowable maximum, under an accountable plan.
2. Individual expenditures (except for lodging) of less than $75.
3. Expenditures for transportation expense for which a receipt is not readily available. IRC Section 274(d)

https://www.irs.gov/pub/irs-pdf/p5137.pdf

 

[theiacowtipper]

Nontaxable Benefits Provided Under an Accountable Plan
Under an accountable plan, allowances or reimbursements paid to employees for job-related expenses are excluded from wages and are not subject to withholding. An allowance or reimbursement policy (not necessarily a written plan) is considered an accountable plan if:
1. There is a business connection to the expenditure.
2. There is adequate accounting by the recipient within a reasonable period of time.
3. Excess reimbursements or advances are returned within a reasonable period of time. IRC Section 62(c); Treas. Reg. Section 1.62-2(c)(2)

Business Connection
“Business connection” means the employee must have paid or incurred allowable business expenses while performing services as an employee. The reimbursement or advance must be payment for the expenses and must not be an amount that would have otherwise been paid to the employee as wages. Treas. Reg. Section 1.62-2(d)

Adequate Accounting
The employee must verify the date, time, place, amount and business purpose of expenses. Receipts are required unless the reimbursement is made using per diem rates (per diem rates are only available for certain expenses). Treas. Reg. 1.62-2(e), IRC Section 274(d) and Revenue Procedure (Rev. Proc.) 2011-47 Employees generally should have documentary evidence, such as bills, receipts, canceled checks or similar items to support their claimed expenses. This rule does not apply to:
1. Meal or lodging expenses that you reimburse on a per diem basis (discussed later), at a rate at or below the allowable maximum, under an accountable plan.
2. Individual expenditures (except for lodging) of less than $75.
3. Expenditures for transportation expense for which a receipt is not readily available. IRC Section 274(d)

https://www.irs.gov/pub/irs-pdf/p5137.pdf

I’m absolutely in agreement that it shouldn’t be counted as W2 wages. However, I don’t make those decisions.

 

[OrlandNole]

I do my own taxes so I don’t have a "tax guy" and thought I’d ask here. I teach for a community college paramedic program. W2 income. We have a professional development program that reimburses us for things like conferences. I go to one nearly every year. They reimburse actual expenses, but it is counted as income. It goes on regular payroll. They say that the burden for determining tax deductibility falls on the employee. Seems silly but whatever.

I also teach for other ambulance services and fire departments. Very similar job. They pay me via 1099. So lies the question. I don’t have enough expenses to itemize. However, I can directly deduct expenses related to the 1099 income. But they didn’t reimburse me for the expenses. My W2 Jon did. However, the professional development applies directly to both types of work. Can I deduct the expenses of my conference directly from my 1099 income?

Do those conferences benefit your 1099 jobs? If so, I would absolutely deduct them.

 

[theiacowtipper]

Do those conferences benefit your 1099 jobs? If so, I would absolutely deduct them.

Yes. The conferences focused on EMS education. My 1099 income was from teaching EMS classes.

 

[OrlandNole]

Yes. The conferences focused on EMS education. My 1099 income was from teaching EMS classes.

No brainer. deduct them.

 

[tigerguy_]

I’d stop doing your own taxes and let a CPA handle it and sleep well at night.

The cheapest route isn’t always the best route.

And I’ve been through an audit when I was using a tax preparer and not a CPA. Will never do that again

 

[pablow]

I do my own taxes so I don’t have a "tax guy" and thought I’d ask here. I teach for a community college paramedic program. W2 income. We have a professional development program that reimburses us for things like conferences. I go to one nearly every year. They reimburse actual expenses, but it is counted as income. It goes on regular payroll. They say that the burden for determining tax deductibility falls on the employee. Seems silly but whatever.

I also teach for other ambulance services and fire departments. Very similar job. They pay me via 1099. So lies the question. I don’t have enough expenses to itemize. However, I can directly deduct expenses related to the 1099 income. But they didn’t reimburse me for the expenses. My W2 Jon did. However, the professional development applies directly to both types of work. Can I deduct the expenses of my conference directly from my 1099 income?

Here's your answer from the IRS website. Applies to 1099s too.

Question
I received an incorrect Form W-2. My former employer won’t issue me a corrected Form W-2. What should I do?
Answer
If by the end of February, your Form W-2, Wage and Tax Statement has not been corrected by your employer after you attempted to have your employer or payer issue a corrected form, you can request that an IRS representative initiate a Form W-2 complaint. Call the IRS toll free at 800-829-1040 or make an appointment to visit an IRS Taxpayer Assistance Center (TAC).

• The IRS will send your employer a letter requesting that they furnish you a corrected Form W-2 within ten days.
• The IRS will send you a letter with instructions and Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. You can use the Form 4852 in the event that your employer doesn't provide you with the corrected Form W-2 in time to file your tax return.

Depending on the time of year, the IRS may have federal wage information in the form of a wage transcript. See Topic 159 for more information on how to get a transcript of W-2 information.
When you call the IRS or visit a TAC office, please have the following information available:

• Your employer's or payer's name and complete address including ZIP code, employer identification number if known (see your prior year's Form W-2 if you worked for the same employer), phone number, and
• Your name, address including ZIP code, social security number, phone number, and dates of employment.

If you file your return and attach Form 4852, you’ll need to estimate the wages you earned, taxes withheld, and the period for which you did not receive or received an incorrect Form W-2. You should base the estimate on year-to-date information from your final pay stub, if possible. When filing a Form 4852 instead of a Form W-2, there may be delays processing your refund while we verify the information you gave us.
To help protect your social security benefits, keep a copy of Form 4852 until you begin receiving social security benefits, just in case there's a question about your work record and/or earnings in a particular year. After September 30 following the date shown on Form 4852 line 4, use a my Social Security online account or contact your local SSA office to verify wages reported by your employer.
If you receive a corrected Form W-2 after you filed your return with Form 4852, and the information differs from the information reported on your return, you must amend your return by filing Form 1040-X, Amended U.S. Individual Income Tax Return.

https://www.irs.gov/faqs/irs-proced...additional-incorrect-lost-non-receipt-omitted