Let's say that I was receiving a monthly allowance from my employer for mileage/car. Is that taxable? Would it be preferable to have that included in your paycheck or in a separate expense check?
Technically it could be taxable if the employer is reimbursing you more than what you are driving. But I can tell you most employers don't track the milegae viginantly at all, so more than likely you will never have a problem with it.
Woohoo. I got my pay check the other day, and they didn't take any tax on it. I got exactly what I worked for. I got every penny I deserved....Thank you Saudi.
RM95, No and no. Mileage and travel expenses are not taxable. And it does not matter whether its on the same check or on a different one. Since its not taxable, the net is the same either way. For more information, you might want to read a lil bit of this: http://www.irs.gov/pub/irs-pdf/p15.pdf One thing to keep in mind though, if you do your own taxes. If you are going to itemize your mileage and travel expenses, you must report what you netted in non taxable mileage/expense reimbursement. I drive about 30,000-40,000 miles a year. I have always found its easier, and less costly to just take your standard deduction instead of trying to itemize it (unless you have other write offs).
