Reimbursing out of pocket business expenses the year after they were incurred
If you have paid for business expenses with personal funds during the tax year, and you were not reimbursed by your S-Corp or partnership, you can still submit them for reimbursement in the following year. Although you could take a deduction on your personal return for these expenses in the year you incurred them, the tax savings would be less than if you allow the entity to deduct the expense on the entity return and thereby reduce your income. No matter which year you take a reimbursement, you should keep supporting documentation for the expenses you are reimbursed for, such as cancelled checks or credit card statements, along with an invoice or receipt for what was purchased.