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Tax Deduction Consulting: Qualified Pre Tax Deduction Manchester NH

One common form of qualified pre tax deduction is used for parking expenses for employees. This type of deduction is done in three different ways. They are employer paid pre tax deduction, employee paid pre tax deduction, or a combination of both.

Mr. James E. Knee (RFC®), MBA
(603) 224-1010
6 Loudon Road, Suite 505
Concord, NH
Company
Sterling Financial Services, LLC
Qualifications
Education: B.S., University of Bridgeport;MBA, Southern New Hampshire University;Advanced Certificate in International Business;Series 24 Registered Principal License;Series 7 and 63 Securities License;NH Health and Life Insurance License
Years of Experience: 26
Membership
IARFC, FPA
Services
Invoice, Estate Planning, Pension Planning, Retirement Planning, Tax Planning, Tax Returns, Seminars Work, Employee Benefits, Education Plan, Asset Protection

Data Provided by:
Fishers Income Tax Svc
(603) 622-2057
616 Mast Rd
Manchester, NH

Data Provided by:
H&R Block
(603) 647-6974
1328 Hooksett Rd
Hooksett, NH

Data Provided by:
Melanson Heath & Co PC - Linda Imhoff CPA
(603) 882-1111
102 Perimeter Rd
Nashua, NH

Data Provided by:
Devereaux & Ean-Dixon Bookkeeping LLC
(603) 717-1214
PO Box 2794
Concord, NH
Prices and/or Promotions
10% off of individual tax return prep

H&R Block Inside Northside Plaza
(603) 628-1976
67 HAMEL DR UNIT B4A
MANCHESTER, NH

Data Provided by:
Danis & Company
(603) 656-9041
169 South River RD #14
Bedford, NH
 
Steele Associates
(603) 673-4660
54 Nashua St
Milford, NH

Data Provided by:
Kline & Company, CPA, P.C.
(603) 881-8185
141 Main Street
Nashua, NH
 
J Walker & Co LLC
(603) 224-4829
104 N State St
Concord, NH
Hours
Mon 09:00 AM-05:00 PM;Tue 09:00 AM-05:00 PM;Wed 09:00 AM-05:00 PM;Thu 09:00 AM-05:00 PM;Fri 09:00 AM

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Tax Deduction Consulting: Qualified Pre Tax Deduction

Qualified Pre Tax Deduction

A qualified pre tax deduction is taken from your income before the tax is levied on it. It therefore never appears on your employer's quarterly reporting form 941 or your form W-2.

A qualified pre tax deduction is a term used to describe a deduction from your income that is taken before your taxable income is computed for the purpose of determining tax liability. It does not appear on your employer's quarter report, form 941, to the IRS and it does not appear on your form W-2. This means that it reduces your federal tax, state tax, and even FICA tax by reducing the taxable income.

One common form of qualified pre tax deduction is used for parking expenses for employees. This type of deduction is done in three different ways. They are employer paid pre tax deduction, employee paid pre tax deduction, or a combination of both. In the employer paid method, the employer pays the employee a set sum of money. This money can be used for parking expenses, transit expenses, or vanpool expenses. The sum may be up to $100 per month.

Some of the qualified pre tax deductions plans work by a combination of employee contributions and employer contributions. The University of Chicago offers a voucher plan where the employee elects to have a certain amount deducted on a pre tax basis from their pay and this amount is placed in a transit fund. The transit fund issues vouchers to the employees that can be used to pay for public transportation. The limit of contributions to the plan is $65 per month for each employee.

Another example of a qualified pre tax payroll deduction is the contribution to a personal 401(k) plan. The yearly limit on such contributions have has been set at $15,500 for the tax years of 2007 and 2008. Individual employers, who administer the plans, might set a lower limit for their employees. If they do, the employer's limits are in force for the plan. Regardless, the amount contributed to the plan is deducted from income be...

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