[freedomins01]

I work for a company that was going to let me set up an llc and then pay me. So I did. But then they changed their mind and left everything the same. I still get my paycheck as always. Does this mean I can't get any tax relief for all my expenses? Like I pay for all my copy paper and toner(and I use a lot) and I have a room that is kept locked just for doing their work, and I still have to travel between states back and forth. Since I set up the LLC but they still pay me a paycheck and take out taxes, how should this work? Help Please

[AtlantaTaxExpert]

You have to claim the deductions as employee business expenses, which is detailed on Form 2106 and claimed on Schedule A as miscellaneous deductions subject to the 2% AGI floor.

If you do not otherwise itemize, it may be difficult for you to claim your expenses, and the amount of deduction claimed MAY be limited by the Alternative Minimum Tax.

[ScottGem]

they still pay me a paycheck and take out taxes,

If they take out taxes then you are a salaried employee. Its possible they thought it would be better for them for you to be an independent contractor, but when they reviewed the legalities they may have felt you didn't qualify and left it the same.

So the good news is you don't have to pay taxes yourself. The bad news is it limits your ability to expense items that came out of your own pocket.

I would try to negotiate reimbursements for your expenses.

[AtlantaTaxExpert]

Scott makes good points on this matter. You DEFINITELY benefit by NOT having to pay self-employment taxes (which is BOTH sides of the Social Security and Medicare tax).