So I ordered shoes through my work place and via my paystubs I absolutely don’t understand
So boots cost 200$
First week they took 50$ out of my check (as I expected)
Then the next week my check was 200$ more, on inspection, it showed normal taxes being deducted from, then it showed “Shoes +200$” as if it just paid for the boots from my taxes? But proceeded to give me the money?
Then the following week they took 25$ from my paycheck
So I truely havnt a fucken clue what’s happening rn
In: Other
This sounds more like a reimbursement than a write off. Reimbursements are not taxed as somehow the government sees the money as already taxed. Least greedy thing they do.
To answer the original question: you earn money (taxable income) which derives your tax burden (money government will steal from you). Write offs are used to reduce your taxable income and by extention your tax burden. For the small fry like me I would have to file line item deductions, and those deductions would have to exceed the standard deduction for it to be worth my time to try.
Because you need the boots for work, you can exclude the cost of it from your income when filing for taxes. What you’re describing is your workplace compensating you for the cost of the boots. On the pay stub, you should have the initial amount which is what you were promised for your pay. One of the sections after that is a rollup of all the additions/deductions. Although your taxes normally show up as a deduction in this section, this section isn’t exclusive to taxes.
As for tax write offs, if your company didn’t reimburse you for the boots, you can claim in your tax filing. As an example, let’s say that you make $10,000 over the course of the year. As such, you will normally owe taxes on $10,000 and the tax bracket that you fall under is based on that $10,000 amount. If you paid for the boots out of your own pocket, you can claim that $200 as a workspace expense. As such, the taxable amount and the tax bracket you fall under will be based on an overall $9,500 income.
In the future, recommend you post stuff like this in /r/personalfinance/
This sounds like something you should get clarified through your HR. Depending on your occupation, but most companies aren’t required to pay for your work boots. You can write your work boots off on taxes, but I’m not sure if you can if your company is covering the cost. It sounds like you need to talk to someone at your company to figure out what they paid for, and then proceed from there
Writes offs were explained to me like this.. not sure if this is right but seems legit.
If you make 1000 a year, government says hey you owe us X% of 1000 dollars for taxes. Then you say look I donated 50 dollars and spent 150 on all these other things I can “write off”. So here is X% of 800 dollars instead.
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