After 6mos. of convincing my employer to help me sign up for a lab training program, Dec.2006 he finally paid the tuition $7225. directly into the in-house program which saved me $3000. The amount was put onto my gross income and I have paid him back $2885. so far to date. My problem is that I live in govt.assistance housing for low income families and they are questioning my gross income of which my rent is based. Although, I received no monies directly from my employer for the program, because it shows on my w-2s I'm afraid the housing authorities may try to evict me or worse, claiming I've been trying to defraud the system since I didn't report getting the $7225. to them. I did report the amt. when I did my taxes along with my gross income as it showed on my w-2s. I have to now prove it somehow that this advance was a loan to help me. My credit is too bad to get a regular loan. I have my paymt receipts, the paid program receipt, letter from employer, &w-2. What to else do I do?
2007-08-01 15:44:01 · 3 answers · asked by MS E 1 in Business & Finance ➔ Taxes ➔ United States
If you are paying your employer back, it is a loan, not income. You should not pay taxes on it. However, if you are not paying the whole amount back, then your employer may include any non reimbursed funds in your gross pay BUT not any you are going to pay back. Your employer needs to redo your W-2 and give you a corrected form and then you redo your taxes-form 1040X and then give all that to the housing authority. Your employer needs to get a good bookkeeper and a good CPA to be sure his financials and taxes are correct. Doesn't sound like it!
How can it be income to you if you're paying it back? It's a loan. What's he thinking? His taxes are incorrect too because the amount he put on your W-2, he claimed as a business expense and that's not correct.
Call your local irs office or go in and talk to someone and they will explain it all to you. Better take your boss with you. Do not pay him back anymore until he changes your W-2. You don't pay back income/expenses only loans.
2007-08-01 18:14:31 · answer #1 · answered by towanda 7 · 0⤊ 0⤋
As I understand it, he was right to report it as your income and you should have had to pay income tax on it if you did not have to pay it back. He seems to be trying to claim that as a business expense (wages) and then get it back from you, saving a bunch in taxes by having you pay them.
Call the IRS and ask them.
2007-08-01 23:12:39 · answer #2 · answered by Tom K 6 · 1⤊ 0⤋
this is a good one, go to the labor department immediately. oh they love these ones. they will nail him. while your at it, go to irs to report him.
you should print this out and go to the department of labor.
2007-08-01 22:47:44 · answer #3 · answered by just hanging around 5 · 0⤊ 1⤋