Employer does does not give 1099 because I am actual employee vs. contractor, and am reimbursed for mileage - do I need to do anything?

[emilsjoke]

In previous years, we were all either contractors or hired through a temp agency and were provided with a 1099 for mileage reimbursement, which is rather large. However, now I am listed as an actual employee of the company, and my employer said that there is no need to give me a 1099.  However, do I need to do anything about reporting this income?  It's reimbursed at the standard IRS rate. 

[SherylSTaxExpert · Accepted solution]

If you are an employee and your mileage was reimbursed to you via your W2,  it should already be included in your wages and you would enter your income as it appears on your W2.

[emilsjoke]

Well, that's the problem; it's NOT included on my W2.  Only my hourly wage annual wage earnings are included therein.  It's as if the reimbursements do not exist.  I've had a similar job in which the reimbursements included on the W2, so I know what you're talking about.  Just wondering how to handle this...thanks!

[fanfare]

you're getting a freebie.
on the other hand if the employer issues a w-2C you'll have to amend yout tax return later.

[BobB7]

If the reimbursement is under an "accountable plan" it isn't reported and isn't taxed.  It really isn't a freebie, since if the person were paid as an independent contractor then the reimbursement (assuming it was at standard mileage rates) also would be free of tax.

[BobB7]

{duplicate removed]