Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

I have received a 1099 form from my employer for a car allowance

Customer Question
that I receive monthly....
I have received a 1099 form from my employer for a car allowance that I receive monthly. Where do I report this income on my personal taxes? And where do I deduct mileage for offseting cost that I have incurred?
Submitted: 7 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 4 minutes by:
12/15/2009
Tax Professional: Merlo, Accountant replied 7 years ago
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
Verified

Hello cstsoap,

 

Do you work for this company as a regular employee for a set wage? Do they issue you a W-2 form at the end of the year to report your earnings?

 

 

Ask Your Own Tax Question
Customer reply replied 7 years ago
Yes I am a regular full time employee and recieve a w2. But the payments I receive for the car allowance are not paid through payroll they are paid from accounts payable with no taxes.
Tax Professional: Merlo, Accountant replied 7 years ago

Hello again cstsoap,

 

One more question please. What box number on the 1099 form did they report this in?

 

 

Ask Your Own Tax Question
Customer reply replied 7 years ago
Actually, I am the person in accounting that will be making out the 1099 forms, does it make a difference if I enter it in box 3 other income or box 7 nonemployee compensation?
Tax Professional: Merlo, Accountant replied 7 years ago

Hello again cstsoap,

 

Thank you for the clarification, and I am glad to came here for your answer, because you cannot report this on a 1099 form. The amount that you paid to this employee for a car allowance MUST be included in his taxable wages that are reported on his W-2 form. It does not matter that you paid him with a separate check from payroll.

 

When you pay an employee for business expenses under a non-accountable plan, those expenses are included as part of his taxable wages. The company must pay their share of SS and Medicare taxes on those wages and also withhhold those taxes from the employee.

 

Please refer to page 3 of the following instructions for the 1099 form under the section entitled "Employee Business Expense Reimbursements".

 

http://www.irs.gov/pub/irs-pdf/i1099msc.pdf

 

You will need to have your payroll department add these payments to his taxable wages for the year and report them on his W-2 form.

 

If this was helpful please press the Accept button. Positive feedback is also appreciated.

 

Thank you cstsoap

 

 

Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
Verified
Merlo and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask Merlo Your Own Question
Merlo
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
9,783 Satisfied Customers
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad

Merlo is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
If someone has obtained my tax return and w-2 without my
Good morning. If someone has obtained my tax return and w-2 without my permission as well as showing it to other people, is that legal? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,473 satisfied customers
Does a common paymaster have to file a 940/941/w-2 for each
Does a common paymaster have to file a 940/941/w-2 for each corporation involved? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,473 satisfied customers
Client who only sells life insurance received a W-2, has
client who only sells life insurance received a W-2, has income tax withholdings in box 2 and box 13 statutory employee is not checked. Can we still file the income and expenses under Schedule C … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I'm forming an organization w friends and one of our
Hi - I'm forming an organization w friends and one of our purposes is to raise money for different charities throughout the year... we're trying to figure out if we need to register as a NPO, and then… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I am in need of a copy of W-2 that accountant has. He will
I am in need of a copy of W-2 that accountant has. He will not release them to me because his client(my employer) needs to give permissionn. She is no longer his client. Is it correct that those W-2's… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I need help for W-2 forms for auto loan asap. File w-2's. I
i need help for W-2 forms for auto loan asap JA: The Expert will know how to help. Please tell me more, so we can help you best. Customer: file w-2's JA: Is there anything else important you think the… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,220 satisfied customers
My relative asked me if they can request a 1099 form for
My relative asked me if they can request a 1099 form for work they perform on my name because my tax liability is smaller than their. But is that allowed by IRS ?… read more
abci168
abci168
Principal
27 satisfied customers
I am filling the W-8BEN form to open an account with a
Hello, I am filling the W-8BEN form to open an account with a broker. I am a Mexico resident, living in the US as a student with an appropriate visa. How should I fill Part II of this form? (Claim of … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
FEDERAL INCOME TAX: A SINGLE WOMAN RECEIVES A 2016 FORM W-2
FEDERAL INCOME TAX: A SINGLE WOMAN RECEIVES A 2016 FORM W-2 FROM HER EMPLOYER WITH A TYPO IN THE SOCIAL SECURITY NUMBER. TO DATE THE EMPLOYER HAS NOT PROVIDED A "CORRECTED" FORM W-2. IS THERE AN IRS "… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,220 satisfied customers
I need a copy both mine and my husbands w-2 form for the tax
I need a copy both mine and my husbands w-2 form for the tax year 2016.where can I get them … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,220 satisfied customers
Is Worker's Compensation payment to be added as income? I
Is Worker's Compensation payment to be added as income? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I have a personal Tax question. Next month Medicare will be
I have a personal Tax question. Next month Medicare will be my health insurance provider as I turn 65 in September. Am current on my present health care premiums with the exception of August premium. … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
After I filled my taxes I received three 1099 forms for
After I filled my taxes I received three 1099 forms for cancelled debt. I was and am insolvent. Do I need to file form 982 with an ammeded tax form or just form 982 since I already filled Greg… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,220 satisfied customers
My daughter-in-law receives a W-2 form from her employer,
My daughter-in-law receives a W-2 form from her employer, this is her only income. The Medicare income is $53,903 but her NJ State income is $60,053. How is that possible? No investment or interest in… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I'm confused with income tax reimbursement letter. Pa. With
Yes with tax return every year I have recipts for stuff I buy … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Need to get extension, lost my w-2s, 1099 forms.. Retired.
My name is***** On social sec. Need time to get copies of w2-s Requested copy from ex employer today. won't get until May 1st I already did that earlier today. I don't know if it was accepted or not. can you check? I am not computer knowledgeable.… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Trying to help my mom w/ her taxes - lost her 1099 form from
Thanks, ***** ***** help my mom w/ her taxes - lost her 1099 form from last year -Help … read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
682 satisfied customers
I received two W-2 forms forms from DSHS - state for the
I received two W-2 forms forms from DSHS -Washington state for the care of my disabled son who lives in my home. but I should not be receiving these or having to claim this under irs notice 2014 diffi… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x