Non accountable auto reimbursement = wages?

[Jesse]

I have a construction worker that receives a monthly gas allowance under a nonaccountable plan. The amount is in box 14 - $3,600 "auto reimbursement". Because this is a nonaccountable plan this amount should be included in box 1 correct?

If it is included in wages, when I complete the 2106 I do not subtract this amount for reimbursements since it should be in his taxable income, correct?

[Bill Tubbs]

Right-O

Correct on both counts.

[Jesse]

Thanks Bill!!

[Snaggletooth]

Don't count on it.

Bill Tubbs gave the right answer - the auto reimbursement should be under "Taxable wages" and therefore no need to make adjustment for it.

However, most employers who have unaccountable plans do so out of ignorance. I'll bet they don't know that Box 1 is supposed to contain the auto reimbursement.

However, I don't think it is incumbent on the tax preparer to research it. This is the responsibility of the employer, and we can't assume the employer has misrepresented the W-2 based on the information visible to us. Occasionally, there are omissions so bad that the preparer MUST do something, but I don't think we are automatically to assume the W-2 is wrong.