Rent of Truck

[Danielle]

Have a client that came today with a 1099-MISC with am amount in block 1 Renta. Upon questioning this amount was for him using his truck for the employer. Job entailed quite a bit of local mileage and employer paid a set amount each month for the client to use his own truck.

No mileage records kept. What would be the best way to handle this and where entered on return.

[Matt Sova]

1099 is wrong

The company should have added the vehicle allowance to his W-2 since this is not an accountable plan. I have a client in a similar situation, but his employer puts it in box 7. I put the amount on line 21 not subject to SE tax. Then deduct mileage via 2106 flowing to Schedule A subject to 2%.