Taxing re-imbursements?

No. The money you used to buy those products/services had already been taxed when you earned it. You spent it on their behalf, and they are repaying you the cost of those products/services. The reimbursements are NOT income, and should NOT be taxed in any way.

You can solve this a few different ways:

1) talk to the company and get them to stop withholding taxes on reimbursements;
2) wait until tax time and get the money back as a tax refund, since the money was NOT taxable wages but rather reimbursements; or
3) don't spend any more of your own money on company business. If something needs to be bought, make sure the company is billed directly...payment doesn't come out of your pocket.

 

Guess I am too new to trucking to understand. Do you mean you are a company driver and the company wants you to pay for things for the truck out of your own pocket? Man, I am glad my company doesn't do that.

 

An example of a reimbursed expense would be if you have a light burn out, and you buy a new light bulb at Walmart, NAPA, or the truck stop to install in their truck so that you won't be harassed by the DOT before you can make it through a company shop, you can submit that receipt to the company and they will pay you back for the expense.

As for school reimbursements, I'm not sure what you mean by that. They aren't repaying you for going to school. If anything, they are withholding money that they fronted to pay for your school. That should be taxed, as it is still income that you are earning. When you file your taxes, though, you can look into whatever tax credits might be available for educational expenses.

 

I wouldn't work for per diem...saves the company money at the expense of the driver. Lowers your "wages" which means you are less likely to qualify for a loan if you want to buy/refinance a house someday. Not only that, but the lower "wage" also means your social security and medicare taxes are based upon that lower wage...which means if you start collecting those benefits (disability, etc.), you will receive less because it is based upon the lower salary. Not to mention, if they count too much of your earnings in the "per diem" column, and you don't spend enough nights out to justify the claim on your taxes (form 2106), then you'll end up owing the back taxes on the extra money.

In your situation, I would consult a tax professional about whether or not the school reimbursements should be tax-exempt or not...

...and I have no "internet" friends. Don't take it personally.

 

Are you sure ??

Does your pay stub reflect reimbursements have been added BACK to the taxable income column?

Simple to check.....

 

Your best bet would be to talk to an accountant about this issue. They understand the tax laws regarding these things the best.