AboutJohn Stancil, CPA Expertise I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Association of Tax Professionals, and the Institute of Management Accountants.
Visit my website at www.johnstancilcpa.com.
Also visit my blog, www.thetaxdocspot.com.
Experience I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper. I have prepared taxes for over 30 years.
Education/Credentials DBA University of Memphis
MBA University of Georgia
BS in Accounting Mars Hill College
Question I live in TN but work in PA. I travel every week to PA and have done so for about 2 years. The company that I am with is a consulting firm. They have me contracted out to a hospital there in PA. During my travel, I use the company assigned AMX for business expenses. Every week, the company pays AMX whatever I had charge during the week. The also, send a bill to the client for the reimbursement of those expenses. At the end of the year, the company totals the amount of expenses used on the AMX and adds this amount to my W2 line 1 making it appear as though I make this huge sum of money. They operate on an accountable plan. Is this legal. They tell me that they are well within the IRS guidelines of doing this.
Thank you
Answer Gary,
Thanks for your question.
I am sorry to tell you that your employer is 100% correct. Since your assignment is more than 12 months, PA is considered your tax home. As such, your travel expenses are not deductible. Any reimbursement is considered taxable income.
