If I’m taking a course and paying for hotel, etc what is the best way to benefit? Is it best to have my employer pay my CE and deduct from my pay check before taxes? Or is better for me to write a check for the CE and list it at the end of the year during taxes? How do people go about this?
Here’s the deal:
You’re better off letting the employer pay. You save both income AND payroll tax and you’re employer saves their share of the payroll tax. Winwin.
IF you pay it personally you could list it as an unreimbursed employee business expense and you may lose a portion of it depending on your adjusted gross income OR you could be subject to AMT where you actually lose the benefit of the deduction.
If the employer pays you, you avoid all those what-if’s & are GUARANTEED the income tax savings AND the payroll tax savings to boot.