Rural mail carrier

[KJ Judd]

Client has a W-2 form the U.S. Postal Service listing $588.00 in box 32 - employee business expense. Not quite sure what this is.

Is this the qualified reimbursement talked about on p10-6 TTB? At first I thought it was dues.

Also my first rural mail carrier, do I figure auto expenses as I would for business - either cents per mile $.445/mi or business % of actual? (of course subject to 2% of AGI as employee).

[Brad Imsdahl]

Box 32 is not a box on a standard IRS W-2. It is a special information box used by the post office. There should be some explanation provided with the W-2 on what it represents. My guess is it is the qualified reimbursements described on page 10-6 in TTB. Rural mail carriers have a special treatment where they get a tax free reimbursement for the use of their vehicles without having to account for anything. Normally, under an accountable plan, employees must substantiate their expenses. But rural mail carriers do not.

If the rural mail carrier wants to deduct expenses for business use of the vehicle, subtract the tax free reimbursements from total expenses and take the difference as a deduction on Form 2106. Figure business expenses using the same standard mileage rate or same actual expenses that you would for any other employee.

[ChEAr$]

And

Box 32 is not a box on a standard IRS W-2. It is a special information box used by the post office. There should be some explanation provided with the W-2 on what it represents. My guess is it is the qualified reimbursements described on page 10-6 in TTB. Rural mail carriers have a special treatment where they get a tax free reimbursement for the use of their vehicles without having to account for anything. Normally, under an accountable plan, employees must substantiate their expenses. But rural mail carriers do not.

If the rural mail carrier wants to deduct expenses for business use of the vehicle, subtract the tax free reimbursements from total expenses and take the difference as a deduction on Form 2106. Figure business expenses using the same standard mileage rate or same actual expenses that you would for any other employee.

the standard mileage rate for rural mail carriers is..... ?
(more than 44.5)

[Gene V]

the standard mileage rate for rural mail carriers is..... ?
(more than 44.5)

The rate for mail carriers last year was 44.5 cents per mile. I believe it use to be higher, but not for many years.

[Brad Imsdahl]

1997 was the last year that the standard mileage rate for rural mail carriers was higher than for the rest of us.

In 1998, the rates were equalized. The new law added an “equipment maintenance allowance” paid to rural mail carriers as amounts paid tax free under an accountable plan. In other words, the rural mail carrier does not have to substantiate actual expenses or miles driven to get the allowance tax free.

[ChEAr$]

1997????

1997 was the last year that the standard mileage rate for rural mail carriers was higher than for the rest of us.

And why does that seem like only yesterday? (grin)