AboutCarole Dunton Expertise Preparation of individual income tax returns including social security, pensions, lump sum distributions, sale of personal residence, stock and mutual fund sales, distributions from individual retirement accounts, moving expenses and itemized deductions.
General knowledge of schedule C for small sole proprietorships.
No experience in corporate, estate, partnership or large business returns.
Experience 9 years as tax preparer for major national firm.
Question my company is switching it's plan for managers.
I question the following plan on whether or not it is valid.
Currently, I get a car allowance(taxable) of 350 plus mileage at the IRS rate.
Plan is changing to have a deductable of 500 miles per month that would come out of the auto reimbrusement.
Meaning that if I put 1200 miles in a month I can only apply for 700 miles at the IRS rate.
Is this valid for my employer to request combining a tax-able auto allowable with mileage deductable?
Answer Hi,
What they are planning is permissable. If they do not reimburse you for all of your mileage you can claim the excess as an unreimbursed employee business expense to the extent the expenses exceed 2% of your adjusted gross income.
