Q&A1 Work related expenses

Q&A1 Work related expenses

Tax Planning Questions and AnswersAm I better to have a work related expense reimbursed from my Employer or claim it as a tax deduction?

Answer – This one is easy, you are always better to have any work related expenses reimbursed from your employer as opposed to not having it reimbursed and claiming it as a tax deduction. Why? Because when you claim work related expenses as a tax deduction, you will only get the percentage of tax saved as a benefit. The top marginal tax rate is 49% (including medicare levy), therefore, the maximum benefit you will get from any tax deduction is 49% of its cost. If you are reimbursed for the expense, the benefit you have received will be 100%.



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