Tax issues....maybe

I am an enrolled agent to Practice before the IRS. I do not give false advice out.

You need not worry about me being your accountant.

I only take on clients that are willing to listen. I also do not solicit from here.

 

Brokers don't deduct income tax from O/Os because you can only deduct from employees.

O/Os should claim all legal deductions.

Do you receive a 1099? If so you are not an employee, you are an independent contractor. I guess I misunderstood, I thought you were a company driver and therefor an employee.

I would consult an accountant if I were you. Deducting $$ that have not been taxed in the fist place sounds like problem to me - but hey, not really any of my business.

You were asking for advice, so I gave mine. Take it or leave it.

 

I guess you must never have heard of form W-9 for backup withholding.

It comes from all sources. Interest, dividends, 1099 payments, which would include brokers.

I am glad I did not ask your opinion. I would quickly leave it.

 

As I see it, the biggest variable would be if they were taking it out of your pay before or after taxes. If they're taking it out before taxes and deducting it from your gross income, then, as [POST=1403999]irnndn[/POST] said, you wouldn't be able to deduct it. If they're taking it out of your pay after taxes (which is more likely the case) then I'm with [POST=1403686]Roadmedic[/POST] ' you can deduct this as an employee business expense.

You can't claim expenses you get reimbursed for. Most likely, the company is accounting for what it's recovering from you, as an expense reimbursement.

Best,

 

Well I am not an accountant, but I did sleep at the Holiday Inn last night. So take this with a grain of salt.

I believe that anything the company takes by reaching into your pocket can be a deductible expense. It doesn't matter if you paid taxes on it or not.

In the case of a withdrawal by the company for idling the truck, the company is not getting a tax deduction for road or fuel taxes, because the fuel was not used to move the truck on the roadways, it was used for idling. Therefor, when the road taxes are paid by the company, the fuel used during idling is not taxed and the company would have to show it as income.

 

Better go and spend another night at the Holiday Inn.

The company gets a deduction for the road taxes when the truck idles because they get a smaller mpg to use on paying the road tax. It is never income.

The company should reflect the deduction from the employee for the idle fee as income.

 

If the company is subtracting it from your gross pay, that would be a tax deduction. You can't claim the same deduction twice.

As Roadmedic said, fuel taxes are not relevant to the driver's deductibility of the idling expense.