Mileage reimbursement checks

[Brookamy]

I'm looking into filing for BK. I travel for my job and get reimbursed for mileage....will I have to count those monthy checks into my 6 months of income?

[epiphany]

Me Too

I'm looking into filing for BK. I travel for my job and get reimbursed for mileage....will I have to count those monthy checks into my 6 months of income?

Hi. I asked this question a couple months ago and the answer was no. Since that money is to cover the cost of gas, depreciation and maintenance, it is not considered income. Just keep the reimbursement slips you submit to your company, as well as the receipts or deposit slips that the company provides to you in case you need them to prove where the monies came from.

ep

[Brookamy]

Great!!! That's good news.

I can still claim for gas, car maintenance, etc on the means test though right?

[epiphany]

Great!!! That's good news.

I can still claim for gas, car maintenance, etc on the means test though right?

Hmmm, I don't think you can double dip. I only claimed personal gas consumption (including normal commute not reimbursed) on mine. I think you'd be okay with the car maintenance or at least part of it, since a lot of that reimbursement is supposed to be for depreciation whether you make car repairs or not.

We need a guru to chime in here!

ep

[Brookamy]

That makes sense. Thanks!

[HHM]

Correct, you cannot double dip. You really have two options.

1. Do not count the money as income, but then you cannot claim the opertaing cost as an expense.

2. Count the money as income, and then claim the operating cost as an expense.

[Brookamy]

Thanks HHM. I guess I'll have to talk to the lawyer and see what is best.

[Flamingo]

When you are reimbursed by your employer for any expense, that expense is no longer yours to claim because you didn't pay for it. If you were not reimbursed for the mileage on your trips you could count the costs associated for that trip into your own expenses; however, since you were reimbursed for those costs, you cannot. Same applies for any other business related expenses; phone calls, lodging, flights, train, etc., etc.

irs.gov is your best source as to business related expenses and reimbursement and your attorney will advise you accordingly as to what you need to list and what not to list.

[epiphany]

When you are reimbursed by your employer for any expense, that expense is no longer yours to claim because you didn't pay for it. If you were not reimbursed for the mileage on your trips you could count the costs associated for that trip into your own expenses; however, since you were reimbursed for those costs, you cannot. Same applies for any other business related expenses; phone calls, lodging, flights, train, etc., etc.

irs.gov is your best source as to business related expenses and reimbursement and your attorney will advise you accordingly as to what you need to list and what not to list.

The hard thing here is that the reimbusement is a cents per mile, which is federally mandated. It was 50.5 cents per mile for the last six months. (It just went up to 58.5 starting in July). The cents per mile, depending on what you drive, is actually more than the cost of gas, because it is supposed to cover maintenance and depreciation. The higher gas goes, the less it does though.

However, it is one's own personal car and the company does not cover any personal miles, so I would think that one should be able to take some personal maintenance costs as well. I'm just not sure how one would go about calculating them if meticulous records were not kept. I sure as heck don't keep em.

It would actually be easier, as HHM said, to count the money as income and then take the operating expenses on the whole, but that might, or might not, work out in one's favor.


ep

[Brookamy]

Yeah, I'm worried that the extra income would definitely take us over the median income for chapter 7.

[HHM]

The hard thing here is that the reimbusement is a cents per mile, which is federally mandated. It was 50.5 cents per mile for the last six months. (It just went up to 58.5 starting in July). The cents per mile, depending on what you drive, is actually more than the cost of gas, because it is supposed to cover maintenance and depreciation. The higher gas goes, the less it does though.

However, it is one's own personal car and the company does not cover any personal miles, so I would think that one should be able to take some personal maintenance costs as well. I'm just not sure how one would go about calculating them if meticulous records were not kept. I sure as heck don't keep em.

It would actually be easier, as HHM said, to count the money as income and then take the operating expenses on the whole, but that might, or might not, work out in one's favor.


ep

You still count any personal operating expense. You just need to do a little more work to divide out what is reimbursed, and what is not.

[epiphany]

You still count any personal operating expense. You just need to do a little more work to divide out what is reimbursed, and what is not.

Thank you for the clarification HHM.

ep