Does my employer need to 1099 my car allowance?

Answer by  Liz59 (10966)

No, your employer does not need to 1099 your car allowance. Actually your car insurance and allowance and private matters and do not need any interference from your employer at all. Yes, at times you may need to prove your income statement worth but that can be done by a copy of it.

Answer by  mtown934 (733)

Yes, your employer will need to 1099 your car allowance because it is a company expense. This should be done in order to prevent getting audited because no one wants that and it is really tough to deal with.

Answer by  beck (1099)

Reimbursement for your expenses isn't taxable so if your employer's car allowance is a form of reimbursement then it isn't taxable and no 1099 is necessary.

Answer by  technogeek (6640)

Any money that is given to you by your employer, provided that the money is not a part of your regular salary, nor is a reimbursement for monies that were spent by you for work related expenses, has to be accounted for as an expense on his taxes, therefore, has to be accounted for as income for you via 1099.

Answer by  John (9008)

It depends upon how much of an allowance you get. The IRS sets an amount for this; if you get less, then it is not income and no 1099 or other reporting is needed. If it exceeds the amount, then it is income and must be reported. The amount changes regularly, depending upon the cost of gasoline and other factors.

Answer by  LeheckaG (1826)

It depends on whether: You are a Form-1099/independent-contractor or a Form-W-2/employee? Car & related-expenses were 100% business/income-earning-activity-related, or also for "personal"/non-business-use? YOU can Form-2106/Employee-Business-Expense business/income-earning-related car-expenses (other than "normal" round-trip-commute).

Answer by  Liz59 (10966)

Well the employer actually does not need to allow your 1099 for your car allowance. An employer has no right to do so actually so therefore it doesn't need to be done.