Question by missmissouricutie: Can I claim salary conversion as a tax deduction on my income taxes?
I work for a private practice (as a therapist) and by the end of the year I will have paid a few thousand dollars in something called salary conversion. Can I write this off on my taxes?
To clarify, the money is not converted to anything at all. It is simply taken out of my paycheck and I never see it again.
Best answer:
Answer by Jessica M
You don’t say what the money was converted to? If it was set aside in a 401(k) plan your taxable wages on your W2 will be less than your wages subject to SS. So you won’t pay tax on it because it was deferred. It is not a deduction.
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This is a new term for me. You should really find out EXACTLY what “Salary Conversion” is. Are you an independent contractor ro an employee? An employee has withholdings of soc. sec. taxes, federal, state and local taxes as well as before tax deductions for pension and insurance. If the conversion is for pension or health insurance, it is not deductible.