1 - We have an employee who is paid mileage to and from our office and home. He's basically retired and he lives a long way from our office. Last year, it was decided to complete a 1099-Misc form for him. His reimbursement is all done on Expense Reports where he states the day and actual miles. Is this appropriate? Should a 1099-Misc be issued?

2 - Now I have another employee who had to use his personal vehicle prior to receiving a company vehicle. Should we complete a 1099 Misc form for him as well? At first, I thought this was the same situation but his office is in his house, so I don't think we should file one on him.

Thanks in advance for any assistance!

AtlantaTaxExpert

Using Form 1099-MISC is an accepted practice to report this type of reimbursement. Just make sure you use Block #3 and NOT Block #7 on the Form 1099-MISC.

The reimbursement will be reported as "OTHER INCOME" on Line #21 of Form 1040.