According to CarsDirect, mileage reimbursement up to the federal mileage reimbursement rate is not taxable, but a standard car allowance is considered to be taxable income. If an employee is not reimbursed for mileage, he or she is allowed to list that amount as a deduction on his or her annual tax return.Know More
If an employee does not drive a company vehicle, he or she may be eligible to be reimbursed for wear and tear on his or her car. When a company offers a car allowance, it is usually in one of two ways.
CarsDirect states that a standard car allowance is a set amount given to an employee each pay period by the employer. This amount is meant to be used to cover car expenses and is in lieu of the company furnishing the employee with a company vehicle. This type of car allowance is usually considered to be taxable income, and the employee will have to declare it on his or her income tax return and pay taxes on it.
Instead of a set car allowance, come companies choose to reimburse the employee for the actual miles driven. As of 2015, the federal mileage reimbursement rate is 57.5 cents per mile for business, 23 cents per mile for medical or moving purposes and 14 cents per mile while driving for charitable organizations, as stated on the IRS website. This amount is not considered to be taxable income.
Stipends used for educational study or research while pursuing a degree aren't taxable income, according to H&R Block. However, stipends used for living expenses by a nondegree student or received in exchange for delivery of services are typically taxable income.Full Answer >
Some short-term disability benefits are taxable. Short-term disability payments from private plans are subject to federal income tax when they are paid for with pre-tax dollars, but not when they are purchased with after-tax dollars. Social Security disability payments are taxable when the recipient meets certain income requirements.Full Answer >
In general, the proceeds from a life insurance policy paid to a beneficiary are not taxable and are not included as gross income on tax returns. However, any interest received is taxable and must be reported.Full Answer >
The tax rate on annuities is zero during the accumulation phase; however, annuities are taxable during the distribution phase. The tax rate depends on the final amount that is determined from actuarial models by insurance companies. This final amount is treated as ordinary income and is taxed as such.Full Answer >