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Old 02-11-2014, 09:40 AM
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Is employer paid mileage reimbursement taxable?

I get mileage reimbursement from my employer to travel to, from, and between clients' homes anything over 20 miles one way. When I received my w2, I saw that the money I was paid for mileage reimbursement was included in box 1, wages. When I asked my employer about it, she told me the reason it was included in box 1 is because it is taxable. Yet my husband also travels a lot for his job and gets mileage reimbursement, but his employer did not include it in his box 1 wages. The only difference I can see between the two is that my husband uses his car to do his work (he delivers meals for Meals on Wheels), and I get reimbursed for miles from my home to my clients' homes and back. Incidentally, I don't get paid for my time to travel but my husband does. Don't know if this makes any difference.



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Old 02-11-2014, 10:39 PM
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Originally Posted by scrltlttr1 View Post


#1;I get mileage reimbursement from my employer to travel to, from, and between clients' homes anything over 20 miles one way. When I received my w2, I saw that the money I was paid for mileage reimbursement was included in box 1, wages. When I asked my employer about it, she told me the reason it was included in box 1 is because it is taxable. Yet my husband also travels a lot for his job and gets mileage reimbursement, but his employer did not include it in his box 1 wages. The only difference I can see between the two is that my husband uses his car to do his work (he delivers meals for Meals on Wheels), and I get reimbursed for miles from my home to my clients' homes and back.


#2;Incidentally, I don't get paid for my time to travel but my husband does. Don't know if this makes any difference.
#1; You cannot claim commuting mileage between your home and your place of work , so the reimbursement for miles from your home to your clients are reported on your W2;as he uses his personal vehicle for work-related driving, his ER may reimburse him for the cost. When he is reimbursed for miles driven, the money is not taxable income since the reason for the travel is considered qualified under irs rules. The non-taxable amount is limited to standard rates set by the IRS. When it comes time to file his taxes, he cannot take a tax deduction for mileage hereceived reimbursement for.. You also have to keep personal and business use separate. Once you use your vehicle for a personal reason on a trip, all remaining mileage for that trip will not qualify as tax exempt. Some examples of qualified mileage are picking up supplies, going to the bank on work-related business and traveling to see clients. Mileage reimbursements for these and similar trips are not taxable up to the standard rate set by the IRS. While your ER reimburses you at the full standard rate, that's not always the case. If your husband is not reimbursed for mileage, he can take the entire standard deduction that is applicable as a deduction on his income tax return. If he receives less than the standard rate, the unreimbursed portion can still be used as a tax deduction. However, if he is paid a reimbursement that is more than the standard rate, the excess over the standard rate is taxable income.







#2;I guess it depends on the situation; The travel time that occurs during your regular work hours is "counted," which means you are paid for that time; the travel time that occurs either before or after your regular work hours does not count as actual hours worked. Many ERs have a detailed, written travel expense policy. You need to check with your boss and/or human resources for that information. Commute time to and from work is not compensible but time spent driving between jobs is. It may be paid at a lower rate than your actual work, but it must be paid.



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