Message Font: Serif | Sans-Serif
No. of Recommendations: 0
And all these taxes are only on his net business income, right? (He's going to be fronting travel expenses, then getting reimbursed -- I'd hate to think he has to pay Social Security and Medicare on the expense reimbursements!)

Actually, there is a caveat here I only recently caught onto. He must report the reimbursement as income, but gets to deduct his actual expenses. If they are equal, it is a wash (but still accounted for). Many companies charge a 10% markup on reimbursements for administrative costs and presumably for opportunity cost of fronting the money. If your husband can negotiate this, that extra 10% would be taxable income, but you'd still be ahead. It could also prompt the other company to pay for tickets and hotels up front.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.