1099 from Employer on Company Vehicle

[mguillen84]

Seeing if someone can clarify this for me.

My employer issued me a fleet company vehicle that I've had all year long and use to get to and from work as well as to all the assignments that I'm sent out to do. I've calculated about 70% of my travel is for work and the other 30% has been personal usage (I don't always travel back home).

My employer recently asked for a mileage report that I simply don't have nor was I made aware I was suppose to keep track of. Employer has made it clear that they will issue me a 1099 for the use of the vehicle and classified as personal mileage which is considered taxable income towards me. Keep in mind I'm a full time employee that receives a W-2 from my employer. 

I don't know if that's correct nor whether that's a good or bad thing. Can anyone clear this up for me?

Thanks!

[Vanessa A]

Yes and no, your employer would need to include any personal miles you drive using the company vehicle. This is an employee fringe benefit which are taxable. Employers report all your earnings and benefits on a W2, not a 1099. 

If you cannot show your employer how many miles were business vs personal, they will need to include all miles driven as personal miles as the IRS considers miles not tracked as personal miles. 

[mguillen84]

This was part of my confusion since I didn't understand why I would be given a 1099. 

Do I accept a 1099 or have my employer issue a new W-2?

[Vanessa A]

You should contact your employer and ask them for a corrected W2 to properly report this as employee income not income as an independent contractor.