Questions on Taxes Related to Working from Home

I have question as related to taxes. I don't know if it's relavent to the questions but I live in Florida
and due to COVID-19 started working from home. Is it possible for an employer paying somebody working
from home such as I to pay job related bills such as the Internet bill or electric bill where the employee
doesn't get taxed for these payments to these bills?
Also, could that same employer if doing this for more than one employee use this as a tax write off?
Thanks in advanced for the answers.
Reply to
maxed_out41
Yes. the employer has to establish an accountable business expense reimbursement plan where the employee submits receipts for the business expenses and is reimbursed by the company. The company can deduct these reimbursements as a business expense.
On the other hand, if the company just gives you a sum of money each month to offset your expenses, that money is part of your taxable income and you do not get to deduct any of your expenses (thank TCJA for that change).
The preceding is overly simplified, you can learn more in IRS Pub. 535, Business Expenses,
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Ira Smilovitz, EA Leonia, NJ
Reply to
ira smilovitz
In general, if you incur expenses you incur for the convenience of your employer, and your employer reimburses you, you do not pay tax on that money but your employer treats it as a regular business expense. The classic example is when your employer sends you on a trip and reimburses you for airfare, hotel, meals, and so forth.
However, that principle can be tricky to apply in the context of an employee's home, because you have to pay for utilities whether you work at home or not.
Why not just ask your employer whether the payments they are making to you will be included on your W-2? They are in a better position to know the little nuances of the payments that will determine that people on a newsgroup. If the payments will be in your W-2, then you'll have to pay tax on them; if they're not, you won't.
The number of employees doesn't matter. When an employer reimburses employees for business expenses, the employee doesn't pay tax or get a deduction. The employer includes the money in _its_ business expenses, which will indeed reduce the employer's taxes.
Reply to
Stan Brown

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