Site Navigation

Your Account

Choose Language

Discussion Topic

Can I deduct fed and state taxes

I'm reimbursing my employee for his fed and state taxes he pays every month... do i get to deduct that as my expense? And if so, how will it affect my employee?

Reply to discussion Subscribe to discussion

Is this a worthwhile discussion?

Score 0
Add a comment

1 Reply

Most Helpful Answer

I don't know how that would work. Tax is not a reimbursible expense for him so when you give him that money it increases his income and so it would increase his and your portion of the employee income tax. I think that "reimbursement" would be considered an additional wage for him. I'd check with the IRS and find out if you paid your employer portion and his employee portion of the tax then you should be able to write that off. If you called that a bonus you could write it off but IIRC he'd still owe tax on it.

Was this reply helpful?

Score 1
Add a comment

Join the discussion

Jeremy and Katherine will be eternally grateful.
View Statistics:

Past 24 Hours: 0

Past 7 Days: 0

Past 30 Days: 0

All Time: 30