Mileage Reimbursement From An Employer Accountable Plan

Mileage Reimbursement From An Employer Nonaccountable Plan

IRS FAQ - Mileage Reimbursement
Online Taxes OLT Simple Fast Accurate
QUICK LINKS
Your Return
Start a New 2014 Tax Return
Login to My 2014 Tax Return
Correct My Rejected Return
Amend A Tax Return
Prior Year Return
Status of My Tax Refund
Forms
IRS Tax Forms/Publications
State Tax Forms/Publications
Questions
What is E-File?
IRS FAQ's

 Can I Claim Mileage Reimbursement
Is my employer supposed to include mileage reimbursement as a part of my gross income on my Form W-2, and do I include it on my return as wages, tips, and salaries?

That depends on whether you were reimbursed under an accountable plan or under a nonaccountable plan. Generally, an employer will have an accountable plan if it pays business expenses that would otherwise be deductible by the employee, requires the employee to substantiate the expense, and does not permit the employee to keep any reimbursements that exceed expenses. If the employer does not use an accountable plan, mileage reimbursement would be included in your wages on Form W-2. For more information on reimbursements and accountable plans, refer to Chapter 6 of Publication 463 (PDF), Travel, Entertainment, Gift, and Car Expenses.

If your mileage reimbursement is included in box 1 on Form W-2, you need to enter that amount on the "wages, salaries, and tips" line of your tax return. If you itemize your deductions on Form 1040, Schedule A (PDF), Itemized Deductions, you may deduct the business transportation expense as an employee business expense, subject to the 2% limitation of adjusted gross income. You may usually deduct either your actual business automobile expenses or use the standard mileage rate. For more information on when you may use the standard mileage rate, refer to Chapter 4 of Publication 463 (PDF), Travel, Entertainment, Gift, and Car Expenses.

Back


Authorized E-File Provider Since 1999

ABOUT SSL CERTIFICATES
TRUSTe online privacy certification
Click for the Business Review of On-Line Taxes, Inc. HACKER SAFE certified sites prevent over 99.9% of hacker crime.
RESOURCES
Benefits of OLT Online Taxes
Payment Options
States
Get Started
Customer Service
Site Map
ABOUT OLT
About Us
Contact
Privacy Policy
Disclaimer Terms of Use
Online Taxes Guarantee
Affiliates/Partnerships
Site Limitation
Unsubscribe Email

TAX RESOURCES
Tax Corner
Tax Deadlines
Tax Forms
Tax Publications
Tax Tips
Tax News and Blog.