100 votes
Accepted

Is the company asking me to commit fraud by asking me to apply for reimbursement of half of trip expenses paid entirely by my colleague?

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 ...
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  • 28.7k
26 votes

Does the IRS reprieve those who have to commute for work?

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 ...
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  • 48.6k
21 votes
Accepted

Minimizing medical costs with HSA

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 ...
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  • 64.6k
19 votes

Is the company asking me to commit fraud by asking me to apply for reimbursement of half of trip expenses paid entirely by my colleague?

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 ...
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  • 339
13 votes

Does an HSA have to be used exclusively for medical expenses

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 ...
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  • 45.7k
12 votes

Hiring Foreign Contractors - Is This Tax Deductible?

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 ...
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  • 45.7k
12 votes

Does an HSA have to be used exclusively for medical expenses

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 ...
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11 votes

Is the company asking me to commit fraud by asking me to apply for reimbursement of half of trip expenses paid entirely by my colleague?

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-...
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  • 211
10 votes

Does an HSA have to be used exclusively for medical expenses

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 ...
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  • 2,063
10 votes

Is the company asking me to commit fraud by asking me to apply for reimbursement of half of trip expenses paid entirely by my colleague?

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 ...
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  • 1,623
9 votes

Is it true trips for YouTubers are tax deductible, while investment research costs are not?

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 ...
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8 votes
Accepted

Can you claim books as a business expense?

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 ...
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  • 14.9k
7 votes

Does the IRS reprieve those who have to commute for work?

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 ...
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  • 8,251
6 votes
Accepted

What amount of money can a corporation spend on entertainment

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 ...
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  • 12.2k
6 votes
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Is room and board a qualified expense?

The IRS page you linked is under "Credits&Deductions" -- it applies to AOTC and LLC, and they indeed do not include room&board. 529 plans, formally Qualified Tuition Programs, are ...
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5 votes
Accepted

Are wages from a corporation always immediately tax deductible?

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 ...
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  • 45.7k
5 votes

Minimizing medical costs with HSA

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....
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5 votes

Hiring Foreign Contractors - Is This Tax Deductible?

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 ...
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4 votes

Claiming mileage allowances, what are the rules/guidelines?

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 ...
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  • 339
4 votes
Accepted

Renting from self during out of area remodel project - deductible?

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 ...
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  • 64.6k
4 votes

If I use 1099 or S-Corp, can I deduct rent from my income?

You may be able to deduct some of it. However, it is limited to the portion of the apartment that is used exclusively for work. https://www.irs.gov/businesses/small-businesses-self-employed/home-...
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  • 2,743
4 votes
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Business-gift expenses in the US?

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 ...
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  • 45.7k
4 votes

Is the company asking me to commit fraud by asking me to apply for reimbursement of half of trip expenses paid entirely by my colleague?

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 ...
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3 votes
Accepted

HSA distribution for deferred insurance payment

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, ...
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3 votes

Minimizing medical costs with HSA

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 ...
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  • 153
3 votes
Accepted

Can I write off time spent learning my trade - Two-Man S-Corp

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,...
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3 votes

How does 1099 work with my own company

Can I work on 1099 from my own company instead of on W2? The reason is on W2 I can't deduct my commute, Health Insurance and some other expenses while on 1099 I think I can able do that. Since I ...
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  • 131k
3 votes
Accepted

Can I use my HSA debit card to pay for vaccinations?

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 ...
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  • 48.6k
3 votes

Can I deduct some of the costs for a car if I write about it on my for-profit blog?

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 ...
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