@JHew92
I’m not clear on what you are asking. First, you asked if there was a way you could get reimbursed for your husband‘s business use of his personal vehicle by creating a fake business and “renting” the vehicle to the employer. Now you are asking about employer reimbursements.
A W-2 employee cannot claim tax benefits for the business use of a personal vehicle. You also can’t “rent“ your vehicle to the business and get some kind of fake tax benefit for it.
A business may reimburse an employee for business use of a personal vehicle in one of two ways. If the business has an accountable plan, this means that the business reimburses the employee only for business miles that are proven with some kind of documentation, such as a logbook or a diary. The business may pay up to the IRS standard mileage rate, which was 58.5 cents per mile through June 2022, and was raised to 62.5 cents per mile starting July, 2022. The business may pay less than the standard rate, of course. If it pays more than the standard rate, the excess must be reported as taxable income. The business may pay in advance if it wants, but to be considered an accountable plan, the business must periodically reconcile any advance payments with the diary or logbook that proves the expense, and the business must take back any excess amount.
Or, a business may pay an employee under a non-accountable plan. Under a non-accountable plan, the employee is not required to keep track of their miles and prove them to the business. The business simply pays whatever it feels like paying. Under a non-accountable plan, any reimbursement paid by the business must be included in the employee’s taxable wages and should be included on their W-2. If the employer gives a reimbursement under a non-accountable plan and does not included in the W-2, there is a way to add the wages in TurboTax.
