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Old 04-05-2017, 08:27 PM
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Employer put gas as income

My previous employer would reimburse me at the end of week for my gas after showing receipts. Then at the end of the year would add that as income on my 1099. Is this legal and if so what can I claim? I had a straight Salary example 52k a year but then it would end up being 60k bc of gas!!!



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Old 04-05-2017, 08:54 PM
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My previous employer would reimburse me at the end of week for my gas after showing receipts. Then at the end of the year would add that as income on my 1099.===>He uses nonaccutountable plan; Amounts paid under a non-accountable plan are income to the employee and must be included in wages with appropriate tax withholdings.

Is this legal and if so what can I claim?====legal but not very good for you; In general, employee expenses reimbursed under an employer?s accountable plan are not considered income to the employee for federal income tax purposes. In contrast, employee expenses reimbursed under a nonaccountable plan are considered income to the employee and are subject to withholding. then,you need to report the reimbursement as income on your return and you can claim business related expenses on yur Sch C of 1040 as a self employer; as a regular W2 EE, you need to claim the reimbursed expenses reported as icnoem onyour W2 on your SCh A of 1040; Claiming employee business expenses begins with completing Form 2106to figure out the total amount of the deduction you're entitled to. You can then enter the figure on line 21 of Sch A, the form you'd use to itemize deductions rather than take the standard deduction. The shorter Form 2106-EZ can be used if you want to claim the standard mileage rate instead of actual vehicle expenses. You'd then enter the total of all your itemized deductions determined after you've completed Sch A on line 40 of Form 1040 in place of the standard deduction you'd otherwise be entitled to.so as a W2 EE you need to itemize deductions on Sch A of 1040 if not no deduction



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