Can I pay myself tuition reimbursement?

Discussion in 'Trucker Taxes and Truck Financing' started by makterna, Jan 12, 2022.

  1. makterna

    makterna Light Load Member

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    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?
     
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  3. Lazer

    Lazer Heavy Load Member

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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’.
     
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  4. Six9GS

    Six9GS Road Train Member

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    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...
     
  5. Ridgeline

    Ridgeline Road Train Member

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    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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  6. Siinman

    Siinman Road Train Member

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    No idea on that but you can write it off on taxes on the school cost in most cases.
     
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  7. makterna

    makterna Light Load Member

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    Thats a good idea! Thanks!
     
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  8. tscottme

    tscottme Road Train Member

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    The IRS rules don't allow you to deduct school to change professions, just schools for your current profession. Maybe I'm wrong.
     
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  9. Siinman

    Siinman Road Train Member

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    In some situations it does according to what I read a few years ago Can’t remember where I read it. However it could have changed by now as well. This was 3 years ago when I looked into it.
     
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  10. Siinman

    Siinman Road Train Member

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  11. Ridgeline

    Ridgeline Road Train Member

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    Here is what my accountant said

    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 situation
     
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