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Author: makasha Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121180  
Subject: Vehicle allowance vs. mileage reimbursement Date: 4/6/2013 8:00 PM
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Hello there! I started a new job on April 1, and although similar to my previous job in retail merchandising, the new job provides a vehicle allowance of $250/month. The old job had me track mileage from home to store to store to store to home, and their system subtracted the first 20 miles from home to store and the last 20 miles from home to store, and I would receive a set amount per-mile for everything that was left over.

Another monkey wrench is that my income has been so low for the past 5 years that I have not itemized on my taxes--and thus, beyond the store-to-store tracking, I did not track my mileage.

Because I'm getting married in September 2013, I will become part of a MFJ situation for 2013 and beyond (definitely including itemizing, and likely AMT). California; community property state.

So my questions are:
1) do I need to track my mileage now that I'm getting vehicle allowance? My employer has not given any indication that it will want or need to know this information.
2) am I correct in assuming the vehicle allowance will not have taxes withheld and that I do not need to pay taxes on that amount?
3) what, if any, are the impacts of my now being able to itemize work mileage on my tax return for 2013 and beyond?
4) Am I missing anything else?

If it matters, my new job territory is much closer to home than previous job. I am making out like a bandit on this vehicle allowance deal. I will probably use less than half of the gas I used to use to perform my job duties.

kasha
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