Save at Least $1,294 Tax-Free Every Year! – through Employee Reimbursements!
Welcome Back!
Last March, we opened an office in Miami. Sure is nice there, especially during the New York winters.
Kelly runs our office there. She’s the ‘glue’. Totally amazing, an A-player 360°.
She has a sales background and knows how to work the crowd – a pro!
Kelly often represents our company at networking events, conferences and trade shows. She can work the crowd like nobody’s business.
She typically drives her personal car to company events.
For whatever reason, Kelly does Not submit an expense report for her mileage and tolls.
Free Money Tip #1: Submit your mileage to your employer for reimbursement when you use your personal car for business – business use of personal car.
The Internal Revenue Service – IRS – requires an employee to pay their cost of commuting (commutation) from home to and from the office.
BUT business travel with your personal car for travel from your office to Another location – business use of personal car is different.
Examples include a client’s location / client meeting, trade show or networking event. Your employer can reimburse you, tax-free.
In other words, assuming that your company / employer policies allow, submit an expense report for actual mileage, tolls and parking and receive reimbursement.
As this Budget and Grow Rich® blog post goes live, the IRS reimburses employees for business travel by their personal car – business use of personal car – at 72½ cents per mile.
But check the IRS website to obtain the current mileage reimbursement rate here.
The IRS calls the reimbursement the mileage allowance.
Technically, the mileage allowance as per the Internal Revenue Service (IRS) rules state that the miles you can charge back to your employer is the LOWER of:
The round trip miles you drive from your house to your business destination and from your business destination to your house; and
The number of miles you drive from your office (principal place of business) to your destination and from your destination to your office (principal place of business).
The reimbursement is tax-free to the employee.
Over time, this money can really add up!
Kelly is probably missing out on $500 to $1,000 tax-free, every year.
A few weeks ago, I drove from my office in Westchester County to a business meeting in Northern New Jersey.
Parking was Free but the mileage and tolls totaled $54.19.
◊◊◊<§>◊◊◊<§>◊◊◊<§>◊◊◊<§>◊◊◊<§>◊◊◊<§>◊◊◊
How to beat the high cost of groceries, hands down!
The Secret is to create your own customized ‘Triple Play Grocery Savings System.
This simple yet powerful moneysaving technique will pour money into your pockets year in, year out.
Click here!
◊◊◊<§>◊◊◊<§>◊◊◊<§>◊◊◊<§>◊◊◊<§>◊◊◊<§>◊◊◊
Free Money Tip #2: Ask your employer if they will reimburse you for the cost of your cell phone service.
Depending on your job function, your employer might be willing to reimburse you for the cost of your monthly cell phone service.
That could be $45 to $60 a month, tax-free!
That equals $540 to $720 per year.
Free Money Tip #3: Add a vacation on to your business trip.
For better and worse, I travel a fair amount for business, sometimes to Miami and Ft. Lauderdale and occasionally to Kansas City and San Diego.
As my Uncle used to say, “Good work if you can get it.”
Typically, when your employer asks you to travel for business, they reimburse you for your direct out-of-pocket expenses.
Typically, eligible expenses include transit to and from the airport; lodging and meals – a meal allowance.
While you’re at it, sign up for airline frequent flyer programs and hotel loyalty programs.
I’ve accumulated a ton of points on Hilton Honors Rewards® and enjoy two or three free nights every year.
Free Money Tip #4: Ask whether your employer will reimburse you for training and education expenses relating to improve your professional skills.
Think seminars, advanced training and seminars to gain new knowledge and skills.
Along the way, hopefully you’ll get some raises (salary increases) and a promotion or two.
Advancement and money in the bank!
See you next week.
Arthur VanDam, CPA MBA
P.S. To Save More Money Every Day – click here.
Budget and Grow Rich® – ISSN: 2992-9296 – USA International Standard Serial Number (ISSN)
Disclaimer: OH and Please Remember, we are Not financial advisors, financial planners, attorneys or accountants and are Not providing any specific financial, tax, accounting or legal advice here. Be sure to conduct your own due diligence and consult your own professional advisors to get sound professional advice that’s specific to your financial and personal circumstances, risk tolerance, time horizon and investment goals and objectives among other key factors!
How to Succeed and Achieve Your Dreams!
Tired of the rat race?
To Succeed even bigger, greater and stronger, 10X your success – click here.
Budget and Grow Rich® is the original e-book guide to easy budgeting and wealth-building. Gain financial freedom and pour money into your pockets today and for years to come.
Finally, the proven roadmap to building wealth – how to make a personal budget that really works. Explained in plain English – easy to follow, practical steps. Since 1974, personal finance expert and author Arthur VanDam has used this system to organize his finances, manage his money and amass wealth. Now you can too. This straightforward guide tells all! Handy spending plan worksheet includes 14 categories that does it all. Practical tips and ways on how to create a financial plan and put your financial plan on auto pilot. Budgeting At Your Finger Tips will help You save more money, build more wealth, gain peace of mind and enjoy financial freedom.
Take your Business, Career & Life to a New Level with this Experiential, Immersive Live Event FREE!
How to Make Money in your Spare Time Writing Letters.