Question
Kenneths employer gives him $500 a month ($6,000 for the year) for his business expenses. Kenneth does not have to provide any proof of his
Kenneths employer gives him $500 a month ($6,000 for the year) for his business expenses. Kenneth does not have to provide any proof of his expenses to his employer, and he can keep any funds that he does not spend. His actual expenses for the year were $1,000 for lodging, $600 for meals while away from home, and $2,000 for entertainment. What reporting is required of Kenneths employer, and what reporting is required of Kenneth?\ \ A. Employer adds $2,400 to wages reported on Kenneths Form W-2; Kenneth takes no deductions on Schedule A.\ B. Employer adds $6,000 to wages reported on Kenneths Form W-2; Kenneth takes no deductions on Schedule A.\ C. Employer does not include any amount in Kenneths Form W-2; Kenneth reports $2,400 as Other Income on the front of his return.\ D. Employer adds $6,000 to wages reported on Kenneths Form W-2; Kenneth reports $3,600 as a miscellaneous itemized deduction on Schedule A.
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