Subject: Mileage Reimbursement with Monthly Auto Allowance
I’m curious—can you receive mileage reimbursement for business travel if you already receive a monthly auto allowance? I did a quick online search but couldn’t find a clear answer.
Thanks in advance for any insights!
One response
Whether you’re able to get reimbursed for business mileage in addition to a monthly auto allowance depends largely on your employer’s policy regarding vehicle expenses. Here are a few key points to consider:
Company Policy: Check your company’s guidelines related to mileage reimbursement and auto allowances. Some companies provide a flat monthly allowance to cover all vehicle-related expenses, while others may allow for mileage reimbursement in addition to the allowance.
IRS Guidelines: In the U.S., if your employer does provide an auto allowance, it may cover general vehicle expenses. However, if you incur additional business mileage, you may be eligible for reimbursement based on the IRS standard mileage rate.
Consult HR or Finance: The best way to get a definitive answer is to ask your HR department or finance team. They can provide clarity on whether you can receive mileage reimbursement in addition to the monthly allowance.
Tax Implications: If you do receive both, it’s essential to understand how this might impact your taxes. An auto allowance is typically considered taxable income, while mileage reimbursement may not be, depending on how it’s structured.
In short, it’s possible to receive both, but you’ll need to confirm with your employer’s specific policies. TIA for your inquiry!