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    metmedina's Avatar
    metmedina Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jan 27, 2009, 03:05 PM
    1099 Car Allowance - which box
    My manager gets 500 car allowance - I need to print the 1099 - not sure if the car allowance belongs in box 3 other income.
    codyman144's Avatar
    codyman144 Posts: 544, Reputation: 31
    Senior Member
    		  
    #2

    Jan 28, 2009, 10:22 AM

    I would report as wages on the W-2 per this:

    "Employee business expense reimbursements. Do not use Form 1099-MISC to report employee business expense reimbursements. Report payments made to employees under a nonaccountable plan as wages on Form W-2."

    Instructions for Form 1099-MISC (2008)

    But in know sometimes it is reported on the 1099. Hopefully an expert sees this and gets back to you.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Jan 29, 2009, 08:48 AM
    I agree with Codyman; report the income as wages in Box 1, but NOT in Boxes 3 and 5, because reimbursement for business expenses under a non-accountable plan is subject to income taxes, but NOT FICA taxes.
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