I received a W-2 from my company (salary) and a 1099 for the car allowance that I receive each month of $450.00. I am in sales and use my vehicle daily to travel to potential customers homes to give them an estimated cost for my company's service. I travel about 10,000 miles per year. I pay for my vehicle myself, all of it's maintenance and insurance. My company pays for the fuel I use on my sales calls. Should I have received a 1099 for my car allowance along with my W-2 for my salary? The company that is figuring my taxes for 2007 says no but my employer says yes!

You can deduct your business related expenses on schedule A. You will also complete Form 2106. From the total expenses, you will deduct employer reimbursement.