Our Bay Area tax preparers have some good news for you, but first, a little background:
Tax Deductions for Businesses
Since 2017, tax deductions for out-of-pocket business expenses have not been allowed.
This has been a bummer for employees who incur unreimbursed work-related expenses because they can no longer deduct those costs on their tax returns.
This is why some employers have set up an accountable plan to reimburse their employees for out-of-pocket expenses.
When a business reimburses an employee under their accountable plan, those payments aren’t subject to payroll taxes, and they won’t increase an employee’s W-2 salary or affect their withholding.
Instead, these costs are reported on the business’s return as if the business paid the expense directly.
Employers who reimburse employees using accountable plans pay less in payroll taxes.
This is why using an accountable plan is just one of many possible tax strategies for both businesses and individuals.
Professional Bay Area Tax Preparers Can Help
Now for the excellent news…
I have hundreds more tax strategies I’d like to apply for you this year.
Want to see how much you could save?
Schedule a free tax assessment below!