What's the most common way of treating car allowance for tax purposes?
Hello, we have 10 executives to whom we want to pay car allowance in the amount of $850 a month. We would like to know what is the common practice to treat these type of payments for tax purposes? I know we have an option to request a mileage log to process taxable and non-taxable portions. Alternatively, we can just treat the entire pay as taxable and then they can deduct the mileage expense from their tax return. But what would be the common practice? Thank you
0 answers | asked Jan 13, 2017 12:38 PM [EST] | applies to New Jersey
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