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Level 1
June 1, 2019
Question

My employer reported a car allowance of $2200 (unaccountable plan) on my W2 which did not cover all of my expenses. Was the car allowance reported as income in error?

  • June 1, 2019
  • 1 reply
  • 1 view

I ask this question because the new tax law does not allow me to deduct the expense as an W2 employee.

1 reply

Level 15
June 1, 2019

Non-accountable expense reimbursements (where the employer does not require proof of expenses) are always taxable income.  While the employer could switch to an accountable plan if they wanted to, they are not required to.  This is something you may want to negotiate with them.