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My employer didn list my car allowance on my W2 – should I still deduct the mileage / expenses on my taxes?

April 26, 2017allowance Business car employer Finance list taxes United

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My employer didn list my car allowance on my W2 – should I still deduct the mileage / expenses on my taxes?

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You are prohibited from deducting any expense for which you were reimbursed (an allowance is a reimbursement for the expenses up to the amount of the allowance), unless the reimbursement or allowance was included in your taxable income.

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If he operates an accountable plan and reimburses you using the Federal mileage reimbursement rate for the actual miles driven then it’s a wash and the payments are not listed on your W-2 and you can not claim any deduction for business use. If he gives you a flat rate per month or operates a non-accountable plan then reimbursements must be included in box 1 of your W-2 and you would track the business miles and use Form 2106 to claim any expense deduction.

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When you fill out the 2106, you subtract out the mileage allowance you received. Keep in mind, that large amounts of business miles tends to trigger AMT.