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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?

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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.

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