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Visitor II

Should gas reimbursement be taxed?

Is gas/ mileage reimbursement supposed to have tax taken out of it?

1 Comment
Catalyst V

Should gas reimbursement be taxed?

Yes. Generally speaking, all reimbursed expenses are taxable income. The taxability of that income can be offset if the expense it was used for qualifies for a tax deduction. Weather it makes any difference or not depends on a number of factors. For example, until your work related expenses exceed 2% of your AGI and the total of all itemized deductions exceed your standard deduction, itemized deductions will have no impact on your tax liability.