Originally Posted by
Sonoma76
I guess I'm not getting the distinction here. When I first heard about this, I thought it'd be a simple deduction you can take off your 1040EZ form. But it's not that at all.
Is it clear that the employee at the end of the year will get $240, or is it just the employer who owes Uncle Sam $240 less and may or may not choose to pass that on to the employee?
The employer can't claim it on their taxes unless they pay the employee. It is the payment to the employee than they can deduct.