topic My company vehicle stipend is listed out as auto allowance but it is taxed along with my regular wages. Is this considered regular wages? Or as expense reimb? in Get your taxes done using TurboTax

My company vehicle stipend is listed out as auto allowance but it is taxed along with my regular wages. Is this considered regular wages? Or as expense reimb?

justin_talley — Thu, 06 Jun 2019 14:27:15 GMT

A bit confused since it is taxed vs paid as an expense

You have what is called a non-accountable plan. Your emp...

Opus 17 — Thu, 06 Jun 2019 14:27:17 GMT

You have what is called a non-accountable plan. Your employer gives you an expense allowance and does not require you to substantiate it with receipts or pay back any excess if they pay you more than your expenses. Under a non-accountable plan, the reimbursement or per diem must be included on your W-2 as taxable wages and subject to income tax, social security and medicare taxes. Then, because you are paying your expenses with taxable wages, you are allowed to deduct them subject to the usual rules for work-related expenses.

If this is for work use of a personal vehicle and you are a W-2 employee then you can deduct your expenses as an itemized deduction subject to the 2% rule using form 2106. These limits mean you will get a reduced or maybe no deduction depending on your other tax facts. You can deduct work-related mileage using the standard mileage rate method or the actual expense method. The standard rate is easier and usually more lucrative. You need a diary or log of your work-related travel with the date, business purpose, and mileage driven. The mileage rate includes allowances for fuel, repairs, insurance and wear and tear so the only thing extra you can deduct is tolls and parking. You can't deduct your daily commute but you can deduct other work-related trips you make according to the rules in chapter 4 of publication 463.

https://www.irs.gov/forms-pubs/publication-463

Re: You have what is called a non-accountable plan. Your emp...

bhamous — Sat, 06 Apr 2024 20:48:58 GMT

How do you enter in the box 14 amount that equals the auto stipend? Or do you not have to enter this amount and just claim the standard deduction based on your business miles you traveled regardless of what your stipend was? Yes my stipend was included in taxable income.

Re: My company vehicle stipend is listed out as auto allowance but it is taxed along with my regu...

BillM223 — Mon, 08 Apr 2024 16:48:20 GMT

If you are an employee, you are generally no longer allowed to deduct employee business expenses. So if they reported this on your W-2, it will be taxable, and since 2018, not deductible.

Please read "Where do I enter job-related employee expenses? (Form 2106)"