T.R | Title | User | Personal Name | Date | Lines |
---|
4607.1 | | TENNIS::KAM | Kam WWSE 714/261.4133 DTN/535.4133 IVO | Mon May 20 1996 18:54 | 4 |
| Can't you claim the 0.31 - 0.225 on your Federal and State taxe
returns?
Regards,
|
4607.2 | | ATLANT::SCHMIDT | See http://atlant2.zko.dec.com/ | Mon May 20 1996 18:55 | 9 |
| > Can't you claim the 0.31 - 0.225 on your Federal and State taxe
> returns?
You can, but it's audit bait.
This number has been static for years, representing just another
way that Digital shifts its costs to *YOU*.
Atlant
|
4607.3 | ask a tax attorney/accountant | USCTR1::CARNEY | | Mon May 20 1996 19:17 | 5 |
| I suggest you send an email to corporate counsel asking for the
explanation. If not them, then try human resources. I'm not sure who
that is, but I suspect that department sits in Maynard?
-- Marian
|
4607.4 | | COVERT::COVERT | John R. Covert | Mon May 20 1996 19:30 | 11 |
| > Can't you claim the 0.31 - 0.225 on your Federal and State taxe
> returns?
But the only way you'll see any deduction from it is if the total of
such unreimbursed expenses are more than 3% of your income.
So, if DEC pays you $50,000, 3% is $1,500, and at an unreimbursed 8.5 cents
a mile you'd have to drive 17,647 miles before you'd be able to claim any
of it as a deduction.
/john
|
4607.5 | It still costs | PLESIO::SOJDA | | Mon May 20 1996 19:33 | 6 |
| >> Can't you claim the 0.31 - 0.225 on your Federal and State taxe
>> returns?
Yes, you can get the tax benefit of the full 31 cents but you still end
up with 8.5 cents a mile less to pay your expenses.
|
4607.6 | Good deal for Digital? | MSBCS::MUMFORD | | Mon May 20 1996 19:45 | 5 |
| I've often wondered whether Digital gets to claim the full IRS-allowed
rate on their taxes, while reimbursing employees at the lower rate? If
so, looks like a pretty good deal for the company!
Dick
|
4607.7 | | COVERT::COVERT | John R. Covert | Mon May 20 1996 22:21 | 3 |
| re .6 No, Digital cannot do that.
/john
|
4607.8 | | REGENT::POWERS | | Tue May 21 1996 12:43 | 15 |
| > <<< Note 4607.4 by COVERT::COVERT "John R. Covert" >>>
>
>> Can't you claim the 0.31 - 0.225 on your Federal and State taxe
>> returns?
>
>But the only way you'll see any deduction from it is if the total of
>such unreimbursed expenses are more than 3% of your income.
Plus, this trick only means you don't pay taxes on the money that
you weren't reimbursed, not that you get it all back.
The 3% limit aside, all it can mean is not paying your marginal tax rate
(likely between 10 and 15% average rate at the example 50K salaray)
on the money you spend on company travel.
- tom]
|
4607.9 | Time to Adress this | SOLVIT::LYONS | | Tue May 21 1996 15:50 | 7 |
| Does anyone have any ideas on how we can work together to correct this
inequality? I was intrigued to see this note heading, because this has
annoyed me for awhile now. I think that the Company should be forced
to address this issue; even if the answer is, "Well right now we can't
afford it."
Mike
|
4607.10 | correction | NCMAIL::JAMESS | | Tue May 21 1996 20:04 | 3 |
| The deduction is over 2% of adjusted gross income.
Steve J.
|
4607.11 | Think on this... | MASURE::CRAPAROTTA | | Wed May 22 1996 01:34 | 10 |
| Better yet.. IF you get in an accident while driving for Digital, they
will gladly give you your 22.5 cents and then let you pay your
deductible and other associated costs.. hehehehe.. Aren't they slick
Teflon should be so smooth...
Moral.. If you want me to drive for Digital, get me a car or make sure
it's in walking distance..
Joe
|
4607.12 | | GLRMAI::HICKOX | N1KTX | Wed May 22 1996 15:04 | 10 |
|
Does anyone know what the real return from taxes is because it
is a tax deduction, not a tax credit?
I mean what do you really get back from taxes at year end at
$0.31 cents a mile (you don't truly get a 31 cents),
versus getting 0.225 cents direct into your pocket right away
when you receive reimbursment, not to mention a simpler process?
Mark
|
4607.13 | | MROA::YANNEKIS | | Wed May 22 1996 15:37 | 13 |
|
> Does anyone know what the real return from taxes is because it
> is a tax deduction, not a tax credit?
(Your tax rate) * (the expense claimed)
If I have $200 of "work mileage" and my marginal tax rate is 31% I will
reduce my taxes by $62. This assumes I've cleared the 2%-3% minimum
threshold. Regular commuting mileage does not count!
Greg
|
4607.14 | Thanks | GLRMAI::HICKOX | N1KTX | Wed May 22 1996 17:25 | 8 |
|
re: .13
So the choice is put $200 in your pocket or save $62 at year
end by your example? So maybe $0.225/mile directly reimbursed
isn't such a bad thing....
Mark
|
4607.15 | 22.5 is not a good deal | NCMAIL::JAMESS | | Wed May 22 1996 19:24 | 12 |
| re last few
Digital pays 22.5 cents per mile. This is tax free. If you are on
plan B, Digital pays 8 cents per mile tax free. You take your total
business miles times 31 then subtract your total business miles times
22.5 or 8 depending upon your reimbursement rate. The difference that
exceeds 2% of your adjusted gross income is your deduction.
If Digital paid 31 cents flat rate, there would be no deductions or
credits at the end of the year. Digital currently pays about 2/3 of
what the IRS allows.
Steve J.
|
4607.16 | | SWAM1::STERN_TO | Tom Stern -- Have TK, will travel! | Wed May 22 1996 19:45 | 26 |
4607.17 | | PCBUOA::KRATZ | | Wed May 22 1996 20:22 | 6 |
| To help "even out" the mileage reimbursement policy, ride a bicycle
and put in for the 22.5 cents/mile. I've done it before when attending
local meetings in the GMA. Nothing in the Orange Book 5.11 section
says your "vehicle" must have a motor. Bikes are generally in the
@5 cent/mile range including depreciation and normal wear, so it
works out well. Kratz
|
4607.18 | Sound like BULL to me.. | MASURE::CRAPAROTTA | | Thu May 23 1996 16:33 | 8 |
| re.16
Your only responsibilty is to get to your office.. Not to wherever they
want to send you...
Joe
|
4607.19 | Tell me something I didn't already know. | SWAM1::STERN_TO | Tom Stern -- Have TK, will travel! | Thu May 23 1996 20:09 | 9 |
| >> -< Sound like BULL to me.. >-
>> re.16
>> Your only responsibilty is to get to your office.. Not to wherever they
>> want to send you...
That was my opinion, too. But when your manager and your personnel rep
are buddies...
|
4607.20 | yup.. | MASURE::CRAPAROTTA | | Fri May 24 1996 01:41 | 7 |
| Well, I guess I know what you mean. I never signed anything that say I
must have a CAR.. It depends on how much you want to push it in this
wonderful employee environment we're in.. :-(
Joe
|
4607.21 | Been there, done that ! | NHASAD::WINDHAM | "Living Life Without a Net" | Fri May 24 1996 20:49 | 12 |
| Back in 1989/1990, I worked at a Petty Cash window (remember them?) at DAS in
Andover, MA. I received several inquires from my customers (employees)
questioning the $ .225 mileage reimbursement rate.
I inquired into the matter and ended up with the Corporate Tax Department I was
informed that the matter had just been reviewed, and the determination was made
not to change the Corporate reimbursement rate "at this time". That was when the
IRS had increased their mileage allowance to $ .26 per mile.
For what it's worth...
Sue
|
4607.22 | | KDX200::COOPER | Heh heh - Not likely pal | Fri May 31 1996 18:42 | 9 |
| So, what do we do to get Digital to bump the rate up to $.31/mile??
I sometimes put 300 miles on my car in a week... MCS says "save money"
and there are no car plans being given out at this time...But when your
ride is a v8, .225/mile doesn't cut it - especially in light of the
increased gas prices, insurance premiums and all the other issues
brought up here...
So - what do we do about it?
|
4607.23 | | BUSY::SLABOUNTY | Great baby! Delicious!! | Fri May 31 1996 19:22 | 7 |
|
Get rid of the Mustang, and buy a Geo Metro.
.225 cents/mile will have the car paid off in about 6 months.
Glad to help. 8^)
|
4607.24 | Hmmmm | SMURF::STRANGE | Steve Strange:Digital UNIX, DCE DFS | Sun Jun 02 1996 15:55 | 9 |
| > .225 cents/mile will have the car paid off in about 6 months.
...at which time the car will unceremoniously stop running. :-)
It is difficult to run almost any car at less than $.225/mi these days,
especially if it is a newer, reliable car. So although I do almost no
driving for Digital, I sympathize.
Steve
|