The company I work for gives it's employees a monthly truck allowance. They've been issuing 1099's to each employee at the end of the year listing the yearly truck allowance under rents. Is there a reason for this (any benifits) or should this be reported under other income?

Rents is better than other income because other income is for goods or services and rents is for using someone else's equpment (or vehicle). When the company pays the employee, the company has an offsetting expense which is rental. Otherwise, it will look like wages without deductions like taxes.