Is gas mileage reimbursement taxable?

Question

I'm going to have to pay my own taxes since I'm a 1099 contract employee. Is gas mileage reimbursement taxable since I'm already being paid for it, or would I just tax my regular hourly rate?

I'm not asking about it being taxable for my actual taxes, but for when I have to pay my own taxes. Like with the gas mileage on there, I grossed 909 my last check, but without the mileage, it'd be around 700 or so. So would I pay taxes on the 700 or 900?

Answer 1

You would only pay the tax on your hourly rate not on any reimbursable expenses. The 1099 your employer issues should not reflect any reimbursable expenses.

Answer 2

If the amount on the 1099 includes mileage reimbursement, you report all of that amount in your gross receipts, and subtract mileage in the expenses section of Schedule C under vehicle expense.

If the amount on the 1099 does not include mileage reimbursement, then you cannot subtract mileage in the expenses section of Schedule C.

Make adjustments in Schedule C if your mileage reimbursement is not the same as the standard federal rate of 40.5 cents per mile, adding or subtracting so that your net profit does not include any amounts paid to you as mileage.

Your software package will have questions or entries that will do this for you.

Answer 3

If you are a contract employee, any monies given you by the person that you work for should be included on the 1099. If the mileage reimbursement is included on the 1099 and the mileage meets the criteria to be deductible, then you will complete a Form 2106 claiming the mileage. It may be that if you were reimbursed at the standard mileage rate and your actual expenses were higher, you may have excess deductions.

Answer 4

It is not taxable, however, you can't claim mileage either. It should not appear on your 1099 though, THAT is income.