Job pays $.60/mile as reimbursement, do I need to pay taxes for this?

Forum|Forum|2 years ago
October 28, 2023
4 replies
5 views

This is a government job. They pay full amount no taxes taken out. And I get between 400-700 miles a week but the payments are for individual days so if I claim on Monday 100 miles at .60/mile I'm getting $60 for that Monday. And if I do 175 miles it is $105 just for that day. And the pay is just that amount even though I claim maybe up to 700 or more miles a week

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xmasbaby0

Level 15

Sorry---W-2 employees cannot deduct job-related expenses on a federal return. Job-related expenses were eliminated as a federal deduction for W-2 employees by the tax laws that changed for 2018 and beyond. Your state tax laws might be different in AL, AR, CA, HI, MN, NY or PA.

If you live in a state that lets you deduct job-related expenses, the information will flow from your federal return to the state return, so enter it in Federal>Deductions and Credits>Employment Expenses>Job-Related Expenses

https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-reform

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Mike9241

Level 15

if you are saying no taxes are taken out of your paycheck (They pay full amount no taxes taken out). in this case the employer is treating you as an independent contractor. you will file a schedule C where you can deduct your actual vehicle expenses net of the reimbursement.

if you were an employee you would have gotten a w-2. in a non accountable plan the reimbursement should be included in you W-2 wages box 1 for which you get no offsetting deduction whereas under an accountable plan it would not be included on the w-2 and you don't need to report it.

Mike9241

NCperson

Level 15

@dant74 - if your employer is reimbursing you for the costs related to your personal automobile (gas, depreciation, etc.) adn these travel costs that are part of your job ( and not commuting to and from work), not understanding why it would be taxable in the first place.

The reason they are not taking out taxes is probavly because it is not taxable to you. Where does it appear on the paystub? is it part of the taxable income or is it separately listed as simply a reimbursement?

NCperson

Level 15

Hal_Al

Level 15

Q. Do I need to pay taxes for this?

A. No. Reimbursement, from your employer, under an "accountable plan", is not taxable income to you. Reimbursement for business miles actually driven, at less than the IRS rate ($0.625) qualifies as tax free reimbursement. It doesn't matter what the frequency of the reimbursement is.

You report nothing about the reimbursement on your tax return.