101

It does not sound like fraud, if your colleague is also told to expense only half the room cost despite originally paying all of it. The company's position seems to be that since two employees benefited equally from the room, its cost should be allocated equally for tracking purposes. Otherwise, it would be potentially unfair (though not illegal) if your ...


26

No. Regular W2 employees cannot deduct housing or transportation costs related to their employment. However, in the US, many employers offer Parking and/or Transit FSA programs which are usually collectively referred to a Commuter Benefits FSA programs, this is particularly common among larger employers with locations in major metropolitan cities. Under ...


21

There's an annual contribution limit, for 2019 it is $3,500 single/$7,000 family. Otherwise, it's fine to match future contributions to prior or planned qualifying expenses so long as the account was established before the expenses were incurred. There is no deadline for reimbursement, so if you have the procedure done now and pay out of pocket, you can ...


19

I don't understand how you can claim half the expenses. Every company I work for requires receipts, invoices, bills or statements of account or similar proof of having made the expense. You don't have a bill from the hotel, ergo you can't claim an expense made on the company's behalf. Your colleague has the bill for the room, if he claims only half of it ...


13

I just want to point out that your question implies a misunderstanding, even though you didn't explicitly mention it: I had an HSA last year. This year I have health insurance through ACA. The fact that you have insurance through the ACA may not be relevant. There are many plans in the ACA that are HSA compatible. But even if you don't currently have a ...


12

If you want the tax benefits of the funds, yes, they must be used for qualified medical expenses as defined by the IRS. You can withdraw funds whenever you want, for any reason, but if they are not spent on qualified medical expenses, then there will be tax implications. If you are under 65 years old, you will pay income tax plus a penalty on any ...


11

Your premise is incorrect: I believe if they were US based contractors I would need to send them a form to do my own deduction. If it is a legitimate business expense, you can deduct it regardless of whether or not they are US or foreign workers. You only need to send the 1099 form to the IRS and US workers (or foreigners performing work in the US) that ...


10

Yes, it must be for a qualified medical expense. Qualified medical expenses are those expenses that generally would qualify for the medical and dental expenses deduction. These are explained in Pub. 502, Medical and Dental Expenses. Also, non-prescription medicines (other than insulin) aren’t considered qualified medical expenses for HSA purposes....


10

Is this fraud (i.e. a crime)? It depends. What is the source of the reimbursement? And is your colleague requesting a full reimbursement? If your colleague only requests 1/2 reimbursement, then that is just stupid accounting. But, maybe your companies accounting system is setup to force this lousy solution. If your colleague requests a full reimbursement, ...


10

In such a situation, I'd write on the expense claim something like: Paid for by [Other Employee Name] - receipts for full amount will be attached to [Other Employee Name]'s expenses claim. Please re-imburse directly to them. However the other employee fills in their claim (full amount, or "only their half"), it makes it relatively easy for the accounts ...


9

I think you are confused about what the IRS considers a business or not. The IRS has written on this issue regarding a person who makes investments for a living with Topic No. 429 Traders in Securities (Information for Form 1040 Filers) which classifies individuals as: Investors, Traders, and Dealers. Skipping Dealers as they have obvious customers, So an ...


8

Assuming you are in the US, based on some things you have said. If you were self-employed, then expensing books related to your business is a no-brainer and would not cause you any problems with the IRS. As an employee, before 2018 you could deduct "unreimbursed employee expenses" as long as they were normal and "necessary" subject to a few restrictions. I ...


7

You cannot deduct expenses directly. However, your employer may participate in programs to allow you to make a pretax deduction capped at $255 per month to pay for certain commuting expenses. For personal car commuters the main category is to pay for parking. IRS guidelines Qualified Transportation Benefits This exclusion applies to the ...


6

There is no simple rule like "you can/can't spend more/less than $X per person." Instead there is a reasonableness test. There is such a thing as an audit of just your travel and entertainment expenses - I know because I've had one for my Ontario corporation. I've deducted company Christmas parties, and going-away dinners for departing employees, without ...


5

Your intuition, as you suspected, is wrong in this case. ...when are wages not immediately expensable? When the wages are used for construction of a new capital asset. Generally, labor for new construction is capitalized. Here's an excerpt from page 3 of IRS Pub 551: Basis of Assets: More references here, here, and here.


5

You best bet would be to call Peapod or American Express. I would start with Peapod. On your CC statement it says what category your payment was in like in the example below.


5

In addition to other answers: you do not have to pay for medical service in full in one lump sum. Often medical service providers agree on an interest-free installment plan with small monthly payments. And you can pay the installments from your HSA while pumping funds in there every paycheck. There is a yearly limit to how much one can contribute into HSA. ...


4

There are certain situations where you could legally pay yourself rent, but it'd be in the context of multiple business entities interacting, never in the context of an individual renting their own property. Even if you could, any rent paid to yourself would count as rental income, so there'd be no benefit. Edit: I was hunting for examples where it might ...


4

You are certainly able to offset the 12p per mile (up to 10,000 business miles per year) against your tax bill. You are also liable, should you do more than 10,000 miles in a tax year, to the tax on the 3p overpayment for mileage compensation over 10,000 per tax year. Depending on your marginal tax rate you could get 4p per mile reduction in the amount you ...


4

A single member llc is a tax nothing, a disregarded entity that does not affect tax filing unless you elect to pay entity/corporate tax. It will not alter your status or increase your reach. The rules to deduct expenses stem from IRC §212 and Reg §1.212-1, and are partially explained in Pub 550 and Pub 535. The llc will get these deductions if you check ...


4

If you want to be extra sure, get them to sign a W8-BEN form and keep it on file. I have talked to the IRS about this, and they agreed it's generally unnecessary when dealing with a corporation but interpretations may vary. It is a certification by the foreign supplier that: Otherwise, conceivably, you could be dinged for withholding tax. It should be a ...


4

Strictly speaking, business gifts are limited to a deduction of $25 per person per year, though shipping can be tacked on top of that. So, $50 in chocolates for a team would be $10 per person - fully deductible. $100 bottle plus $20 shipping each would be $25+20 = $45 deductible each per person. Note that #1 is a little more gray in that it isn't ...


4

Does this sound correct? Can be correct, but where I am it would be awkward. More for the company than for your or your colleague. (see below) No other company I've been with would think it's correct to apply for reimbursement for something that the employee didn't pay for. That is correct. The solution is that your colleague invoices you for your ...


3

You should check with your employer to see if contibuting evenly through the year would maximize the employer match to your contribution. If that is the case, next year then you will have both reduced your taxable income and gotten a little bit more from the employer match. The first reply post sounds right, check your contribution limit maximums. Another ...


3

Yes, there is a way to do this. You can take money out of the HSA to reimburse you for anything that you have paid out of pocket on health care that your insurance has not reimbursed you for. Yes, you have been told that a year from now your insurance will pay you that last 25%, but at this point it is just a promise. As you said, there could be any ...


3

I agree with Charles and Hart in the comments that the size of the investment does matter, especially because you have no expected return on investment. Meaning, as you have no "followers" now, it is unlikely that buying a Tesla will result in automatic fame or notoriety. I would say that you cannot expense a vehicle to start a blog about that vehicle. The ...


3

You can find a general list of many common types of expenses and whether they are covered by an FSA here. Please note that this is general information that can be changed at any time, and may not be up to date with current IRS information. Ideally, you could call your employer or insurance company and they could provide you with the most up to date materials....


3

Yes, copays and costs associated with vaccinations are qualified medical expenses under HSA guidelines. Receiving a vaccine is a service, not a prescription drug. You don't take the vaccine home with you. You can include in medical expenses amounts you pay for prescribed medicines and drugs. A prescribed drug is one that requires a prescription by a ...


3

I'm not sure what you mean by "writing off your time," but to answer your questions: Remember that, essentially, you are a salaried employee of a corporation. So if you are spending time at your job, even if you are not billing anything to a client, you are earning your salary. If there are costs involved with these activities (maybe class fees, a book ...


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