Herb Smith wrote:
- quote -

No. The OP said that the reimbursement was included in
wages on the W-2. Therefore, the form 2106 approach is
correct. I certainly hope that the W-2 has a difference
between income tax wages and FICA wages for this....

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- quote -

Correct.

- quote -

So would I. And the bus would be subject to depreciation,
and therefore the bonus 50% and regular depreciation. This
would probably be preferable to section 179 since it evens
out deductions over several years. hard to imagine a
school bus driver needing a large slice of 179 in one year.
Unless maybe her husband makes 100,000$ per year.

Cheer$,
Harlan Lunsford, EA n LA

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Herb Smith wrote:
- quote -

She can't take the "standard mileage allowance" on a school
bus, can she? I'd make it employee business expense, with a
non-accountable "reimbursement" plan.

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Herb Smith wrote:
- quote -

When the amount is included in W-2, any employee expenses
are deductible. Remember, this is not a car. I imagine,
or would hope, that the reimbursement might be something
like 45 cents a mile or so. Can you imagine what it takes to
run a schoolbus? actually I can't.

If the reimbursement WERE just for a pov, and exactly 36
cents a miles, and not included in the W-2, then it would be
from an accountable plan.

Cheer$,
Harlan Lunsford, EA n LA

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Harlan Lunsford <lunstax[at]bellsouth.net> wrote:
- quote -

Frankly, I don't see a deduction here, especially not an
"unreimbursed" employee expense. Didn't the OP state that
she was "reimbursed" on a per mile basis, already? This
sounds like an effort to get paid paid twice for the same
expenses.

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Redneck wrote:

- quote -

Form 2106, then Schedule A as a miscellaneous itemized
deduction.

The school board should treat its bus drivers better than
you describe. An accountable reimbursement plan is in order.

Regards,
Bill
~~~~
Associate Professor of Accounting
College of Business & Economics
Longwood University
http://www.longwood.edu/staff/wpbrown
~~~~
Opinions expressed by me are mine alone, not necessarily my employer's.

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Redneck wrote:

- quote -

Sadly, on schedule A with a form 2106.

I would advise client to re negogiate her contract however
IF POSSIBLE to be a subcontractor. Of course the school
board probably won't go for that idea, I know. Something
about liability.

Reminds me, what ABOUT liability and insurance?

Cheer$,
Harlan Lunsford, EA n LA

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A new client owns her school bus, the school board pays her
a fixed amount per milefor expenses, the monies are added in
the w-2 but not separated. Where are the expenses deducted
on the 1040. She is an employee of the school board.

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