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Itemized Deductions Schedule-A


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Old 02-11-2012, 10:36 AM
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Mileage

Hi, My office switched locations and my boss offered to compensate me for the extra drive if I would also do some deliveries as well. Each pay period he gave me a check to cover the mileage. Now I received a 1099 for those payments as well as my W2.

Before I got the 1099 I thought I wouldn't claim the mileage because he paid me for them, but now I have the 1099 so I'm not sure what to do.

I started a new job in 2012 and am no longer with that company.

Thanks, Rauld



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Old 02-11-2012, 04:17 PM
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“Now I received a 1099 for those payments as well as my W2. “---->So you received both W2 and 1099 from the ER?? It is possible to receive both 1099 and W-2 forms as a single EEfor a single year. It would be rare, and an ER's giving a contractor/EE both forms for an overlapping period of time would draw scrutiny from the IRS. However, what if you ,a contractor, was hired on as a full-time EE during a tax year? That could happen, but the details of such an event would have to be well-documented, and both parties should prepare for some scrutiny. To do so, there would have to be a clear demarcation between time periods, because of differing rules governing a contractor and an employee.
“Before I got the 1099 I thought I wouldn't claim the mileage because he paid me for them, but now I have the 1099 so I'm not sure what to do.”-----> Amounts paid(reimbursed by your ER) under accountable plans are not income to the EE and are not shown on Form W-2.Under the nonaccoutable plans, Amounts paid under a nonaccountable plan are income to you, an EE,and must be included in wages on your W2 with appropriate tax withholdings. And you need to file Form 2106 an dyou must generally claim a miscellaneous itemized deduction on Sch A for the allowable business expenses if he or she wants to get any tax benefits from them. However, as an IC, you can deduct ,on your Sch C of 1040, the cost of hotels, meals and transportation if a contract requires you to complete the work outside of the local area and it is necessary to remain overnight. Hotels and transportation costs are fully deductible if not luxurious. However, the deduction for meals is limited to 50 percent of actual cost.As long as you work as an IC,you have to drive from one job to a second job or have to drive as part of your job, you can take a deduction for those miles on Sch C. You cannot deduct the miles you drive from your home to your primary place of work. The standard business mileage deduction is 51 cents per mile for 2011.However, as said above, expenses reimbursed by your ER under an accountable plan need not go on the 1099, so you can’t deduct it on your return as an IC. So, it depends on how your ER keeps his books. If your ER’s books show that he reimbursed mileage expenses, then under nonaccoutable plan, you can take the deduction andif NOT, it cannot be deducted by you.



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Old 02-11-2012, 06:43 PM
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Yes, I got a W2 and a 1099 while being full time employed by the employer. Each pay period I got 2 checks, a regular paycheck with deductions and a separate check that says "mileage" with no deductions. There were no hotels, gas or any other expenses. It was calculated at .51c per mile.

The odd thing is that I have all the check stubs and they do not match, the amount $1788-checks, $1575-1099. The 1099 is also hand written where the W2 is from a payroll company.

Should I just go to the IRS and ask them what to do?



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Old 02-11-2012, 07:26 PM
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“ Each pay period I got 2 checks, a regular paycheck with deductions and a separate check that says "mileage" with no deductions. There were no hotels, gas or any other expenses. It was calculated at .51c per mile.”--->I guess you need to check if your ER’s reimbursement is included in your W2 or 1099 OR not. You can’t deduct your mileage expenses as you get reimbursed by your ER under accountable plan(Under this plan youare required to account adequately for expenses with records and return any excess reimbursement within a reasonable period of time.);some ERs reimburse their EEs for business expenses, including mileage expenses for use of their personal vehicles, through an accountable reimbursement plan. Reimbursements received by the EE through these plans are not considered income and should not be reported on the employee's W-2 form. The EE may not deduct expenses for mileage that were reimbursed under an accountable reimbursement plan o the EE’s return; Some ERs reimburse theirEEs for business expenses through a nonaccountable reimbursement plan. Reimbursements are made as part of the EE’s compensation and are considered taxable income. These payments should be included on the EE’s W-2 form. The EEthen may deduct mileage expenses when they file their federal income taxes as part of their business expenses aslong as they itemize their deduction s on Sch A(if Not, then they can’t deduct the mileage expenses). The employee must itemize her deductions in order to deduct her mileage expenses.
“The odd thing is that I have all the check stubs and they do not match, the amount $1788-checks, $1575-1099.”--->W2 is for you as an EE while the 1099 is for yu as an IC, NOT as an EE; I am NOT sure(UNLESS you got paid exactly same wages as an EE / IC) if they match.
“The 1099 is also hand written where the W2 is from a payroll company.”---> The IRS does not care if the 1099 is handwritten or typed or printed off of a computer software; all of the information needs to be filledin.
“Should I just go to the IRS and ask them what to do?”---->You can contact the IRS fro more information indetail.



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Old 02-11-2012, 08:07 PM
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My last pay stub matches the W2, so I am assuming the 1099 was for the mileage checks.

So, you're saying if the mileage checks were done through an accountable reimbursement plan than I should not have gotten a 1099 as they were clearly not added to my W2 earnings.

Thanks



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Old 02-11-2012, 08:14 PM
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“My last pay stub matches the W2, so I am assuming the 1099 was for the mileage checks.”--->Aslong as the mileage reimbursement is included on your 1099, then you can deduc tit on Sch A if you itemize your deductions on Sch A of 1040.
“So, you're saying if the mileage checks were done through an accountable reimbursement plan than I should not have gotten a 1099 as they were clearly not added to my W2 earnings.”--->Correct as said previously, reimbursements received by the EE through accountable plans are NOTconsidered income and should not be reported on the employee's W-2 form/1099.



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Old 02-11-2012, 08:41 PM
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Thank you for all you're help.



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