Is Mileage Reimbursement Taxable?

[EllenFrasier]

For the last two years, my employer has been paying me for my mileage in a separate check from my payroll check. This way, I encounter no taxes on the mileage reimbursement. This reduces the amount of my earned income for the year, but I can't take it off on my income taxes.
This year for some reason, they are including the mileage and payroll in one check. They have the salary listed as commission, even though my job is not commissioned based and the mileage is listed as reimbursement. The payroll person said that the reimbursement is not taxed, but the whole salary is being listed as YTD (year to date) so won't that show up on my W2 as salary earned? So will it all count as income for Income Tax purposes?

 

[Cheshire Figment]

Wait until you actually get the W-2 and then compare it to your statements.

If the reimbursement is included in Box 1, then you will have to fill in (and file) a Form 2106, Employee Business Expenses, with your tax return. On the 2106 show "No Reimbursement From Employer". If the money does not show up in Box 1, then don't worry about it.

 

[seashoreCM]

How is social security and medicare tax computed and how much is withheld?

I kinda believe that the reimbursement was taxable as miscellaneous income all along.

Are you sure you cannot write off the mileage, even if not reimbursed? Check the tax return instructions.

 

[tomthebarncat]

It is 100% tax free and I also get an annual write off of 1,500 Euros for commuting. I have been out of the US system for 12 years so I have no knowledge of that. But I also second the idea of having a professional do your taxes, as it is much easier. I have great respect for my accountant who also does my taxes. His fees are also tax deductable the following year!

 

[dfchelbay]

Wait until you actually get the W-2 and then compare it to your statements.

If the reimbursement is included in Box 1, then you will have to fill in (and file) a Form 2106, Employee Business Expenses, with your tax return. On the 2106 show "No Reimbursement From Employer". If the money does not show up in Box 1, then don't worry about it.

This post....plus make sure you're getting the IRS standard mileage rate from your employer, which is fifty cents per mile. We have to fill out Form 2106 every year because DH's employer only reimburses twenty-five cents a mile.

 

[allyphoe]

I kinda believe that the reimbursement was taxable as miscellaneous income all along.

Shouldn't have been. Accountable plan reimbursements aren't taxable.