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re: Anyone in sales and have a car allowance/gas card?

Posted on 2/21/13 at 2:04 pm to
Posted by iAmBatman
The Batcave
Member since Mar 2011
12382 posts
Posted on 2/21/13 at 2:04 pm to
Any money received as a reimbursement for a personal expense for corporate purposes is not taxed.
Posted by skidry
Member since Jul 2009
3273 posts
Posted on 2/21/13 at 2:40 pm to
quote:

as a reimbursement


This is the key word here. If audited, you need to be prepared to show that you actually incurred costs equal to or exceeding what you received. Any money above those costs are taxable.

For example, your employer can't pay you minimum wage and then call $200K your vehicle allowance. Well, they can, but you will be in serious trouble with the IRS eventually.
This post was edited on 2/21/13 at 2:45 pm
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