I started a trucking LLC in May 2021 and went to CDL school in September. (Dont worry I have trucking experience from another country). My question is if I can let the LLC retroactively pay myself (as its employee) "tuition reimbursement" and whether this would be tax free?
Can I pay myself tuition reimbursement?
Discussion in 'Trucker Taxes and Truck Financing' started by makterna, Jan 12, 2022.
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As for the ‘tax free’ part of your question, if what you want to do is legal(don’t know), the reimbursement would be an ‘expense’ for the company. Expenses are a ‘deduction’ against what you owe in income taxes, deductions are not ‘dollar for dollar’, it only reduces the taxes owed by a certain percentage.
If according to the ‘tax code’, reimbursements are treated as a ‘credit’ than it’s ‘dollar for dollar’.
Don’t get confused between ‘deduction’ and ‘credit’.MOBee Thanks this. -
You might wanna try asking that question to an accountant. Asking it to a bunch of truck drivers, may not get the correct answer.
Just sayin...Lab_Rat_Logistics, MOBee, MidWest_MacDaddy and 4 others Thank this. -
You need to talk to an account who is also an Enrolled Agent because this year you may get audited with this move and need knowledgeable people behind you.
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Rideandrepair, MOBee and makterna Thank this.
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tscottme Thanks this.
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you can’t reimburse or deduct the costs unless you are already driving.
So let’s say if you are an Uber/Lyft driver with an established cash flow and prove that your income is substantial - passes the hobby threshold. This does not count for Uber eats.
So you are educating yourself in a profession you are part of and at this point you can deduct your trucking school costs because you are a professional driver.
just a warning … get your own accountant who is an EA to explain how this is done for your situationsubseaguru and Siinman Thank this.
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