Tuesday, December 6, 2011

Tax Relief - Employee Business Expenses

!: Tax Relief - Employee Business Expenses

As an employee, it is possible to get itemized deductions on your job-related expenses, within limits. You can claim tax relief by filing Form 1040, Schedule A. If you want more information on this you can check out the instructions given on the form.

The cost of commuting to work is not covered under this itemized tax deduction, but you can get some tax relief for local transportation costs. Expenses incurred by traveling from one work place to another, which is not your home, can come under this deduction. On the other hand, if your residence doubles as your office and can be said to be the main place of work for your employer, you can count the traveling from there to the work place connected to your job. It is also legal to claim tax relief on the expenses of traveling between your house and a short-term work place that is out of the normal living and working area.

It is possible to deduct a company's entertainment and gift expenses, but there are some limitations to this. It is most important to keep accurate records of all costs incurred, including the date and time, as it may not be possible for you to claim tax relief without proof of your expenses.

Your employer may have given you an allowance or reimbursed you for business spending under a plan, which is accountable; you should not show this on your W-2 form as a payment and should not be grouped with your income.

If your per day allowance under an accountable arrangement is more than the Federal rate, it is necessary to incorporate this into your salary on the W-2 Form.


Tax Relief - Employee Business Expenses

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