Q&A1 Work related expenses
Am 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%.
The advice provided on this website is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs.