Loss of misc. itemized deductions workaround - Spidell

Loss of misc. itemized deductions workaround

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Message Board Loss of misc. itemized deductions workaround

This topic contains 1 reply, has 2 voices, and was last updated by Sandy Weiner 8 months, 4 weeks ago.

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  • #139043
    Anonymous

    I have a couple of clients who started reimbursing employees for expenses that would have been deductible as miscellaneous itemized deductions in previous years. Then they are reducing the employee’s wages for the amounts that were reimbursed. Do you see any issue with this?

  • #139074
    Sandy Weiner
    Participant

    They should formalize the arrangement as an accountable plan so that the reimbursements won’t be subject to tax on the reimbursements.