| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 1012.1 | | LAIDBK::FRIEDMAN_MI | Don't be happy; worry. | Sun Jan 21 1990 19:21 | 27 |
| My understanding is that Fleet Administration adds the total
of the $200/month payments to Box 10 on the employee's W-2
Form.
This is the worst possible place for Digital to report
the $200/month, because now the employee has to pay
taxes on it. You cannot subtract the $200/month from
your income because Form 2106 "Employee Business Expenses"
says "Do _not_ include any amounts that were reported to you
as wages in Box 10 of Form W-2." The only way you could
have subtracted the $200/month from your income is if
Digital had separately identified the $200/month on Form
W-2 as employee business expenses.
It seems to me that the best you can do on Plan B is to take
the difference between the IRS's allowed $0.255/mile and
the $0.08/mile that Digital gives you and use that as an
itemized deduction. However, the deduction for employee
business expenses is subject to the 2% floor: You can
only deduct that amount that exceeds 2% of your adjusted gross
income.
If someone knows a way that the Plan B $200/month can be
"adjusted" out from one's income, I would be very interested
in hearing how it can be done.
|
| 1012.2 | It helps to have a good Tax Accountant... | PERRYA::COLEMAN | I'm the NRA | Mon Jan 22 1990 13:05 | 39 |
| 1012.3 | Plan B is a JOKE.... | KYOA::CRAPAROTTA | Physical T5-Virtual T7 | Mon Jan 29 1990 11:16 | 7 |
| Although I always wanted to go on plan B, is just wasn't worth it in my
circumstance... I really think that Digital doe not want you to go on
Plan B.. It's probably more avantageous(sp) for Digital to have the
write off.. The $$$ they give for plan B is a real joke...
Joe
|
| 1012.4 | Bad News -- IRS Confirmed it | LOUIS::GOEKE | If I only had a brain ... | Wed Feb 28 1990 20:51 | 20 |
| re: .1
> This is the worst possible place for Digital to report
> the $200/month, because now the employee has to pay
> taxes on it.
This is where the IRS requires Digital to put it.
> If someone knows a way that the Plan B $200/month can be
> "adjusted" out from one's income, I would be very interested
> in hearing how it can be done.
I confirmed it with the IRS this morning. You _have_ to report your employee
business expense on Schedule A, Misc. Deductions section (subject to 2% AGI
floor). This is a change this year.
"No new taxes", eh? They just got a few hundred dollars more out of all of
us on Plan B!
Gerry
|