ILLMAS Posted March 10, 2009 Report Share Posted March 10, 2009 My client received a car allowance (use of personal vehicle) as part of his salary, however the amount he gets is less then what his actual expenses are. The allowance was basically used in fuel costs, but put in alot of miles on his car. If the car allowance is part of his W2 earnings, can I deduct the 100% expenses + mileage on form 2106 or do I have to reduce it by the allowance he recieved? Thanks I am thinking yes he can deduct the actual or standard mileage since he was being taxed on the car allowance, but I could be wrong. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 11, 2009 Report Share Posted March 11, 2009 Yes, if the 'car allowance is just extra salary, and is included in Box 1, then you can use the entire amount on the 2106. You only have to reduce for reimbursements NOT INCLUDED IN THE W-2. Quote Link to comment Share on other sites More sharing options...
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