Discussion:Box 14 Auto
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Discussion Forum Index --> Advanced Tax Questions --> Box 14 Auto
Discussion Forum Index --> Tax Questions --> Box 14 Auto
| 11 April 2008 | |
| If an employee receives a w-2 that includes taxable income amounts in box 1 of their W-2 for auto usage, I understand that they could use the 2106 form to show business usage and offset some of that. What about if the employer hasn't included the amount as wages in box 1? I've got a client who has a $9,000 amount in box 14 for auto, and says they drove over 15,000 miles for the employer during the year. It sounds like an accountable plan, where they are reimbursing the employee for miles the employee drove for the employer while working on the job, thus no taxable income, right? The taxpayer continues to question this and thinks we're doing something wrong. | |
| 11 April 2008 | |
| $9000 even? It's unlikely to be an accountable plan but is an auto allowance. If so, it is being improperly excluded from wages. Have employee report actual miles on 2106, reduced by $9000 reimbursement. The difference will either be positive, resulting in an additional deduction flowing to misc itemized deductions and subject to the 2% floor, or will be negative, meaning the reimbursement exceeded the allowable amount and will result in additional taxable wages which should be reported on line 7 of Form 1040. (15000 X $.485 = $7275, so it should result in additional taxable earnings.) | |
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