Travel Expenses

[RLymanC]

Client is a fireman, meal allowance for being on duty 24 hrs. is well documented, HOWEVER, he accepted a volunteer position with the city, this is a second job. He spent 110 nights on duty for 24 hrs., this requires rest to properly preform his duties. City gave him a 1099-MISC in the amount of $25.00 per day to cover his expenses, why they do this is a mystery.

Since this is a second job would the per diem meal allowance apply?
Mileage from home to this second job appears to be deductable, not sure about meals.

[Jesse]

What expenses are they covering?

I don't see why the meals would be deductible, miles to second job, yes, but not meals, unless away from home temporarily.

Although our local Volunteer Firemen are at the Fire Dept countless hours, maintaining and testing equipment and vehicles, they are paid per fire. The city reports the income on a W-2 as employees.

[ChEAr$]

miles

And why would the miles from his home to the second job be deductible?

[Kram BergGold]

Charitable contribution

If i read your post correctly you said second job was as a volunteer. If the organization qualifies for charitable contibutions then his driving and the per diems should be deducted as charity.

[okie1tax]

Firefighter

It is my understanding that if he drives between his 1st and 2nd jobs, the mileages is deductible. To and from home, either job, would be commuting. As for the $25, unless he is required to pay back any excess, it would be a non-accountable plan and included in his income, i.e., the 1099. If he does have expenses, you mentioned a meal allowance, such as uniform, equipment, etc., he would claim those also, all on Form 2106.

[FEDUKE404]

Looks like compensation

...City gave him a 1099-MISC in the amount of $25.00 per day to cover his expenses, why they do this is a mystery...

I've never heard of such. From the outside looking in, it certainly resembles "compensation" to me! Some payment for a "volunteer" position, perhaps?

At best he might have some "employee" business expenses, but I really don't see any....especially if the guy already is a fireman (yes?) and there could be some overlap.

From the facts given, I don't see any charitable contributions issues there either if you choose to go that route. Maybe some volunteer travel, but he was reimbursed (I think), which would be an offset.

FE

[veritas]

Since the IRS

says compensation (see post above) paid to a volunteer is wages, I'm going with business miles between two jobs.

[FEDUKE404]

Two jobs?

says compensation (see post above) paid to a volunteer is wages, I'm going with business miles between two jobs.

That could be extremely tricky:

1 - What is direct distance from job #1 location to job #2 location? (Are they perhaps the same??)

2 - You can only go that route when employee works the same day at both job locations.

3 - Assuming there is a Form 2106 issue, the 2% AGI limitation for Schedule A might make it all disappear!

4 - OF COURSE the client has contemporaneous records to support this travel, right?

WDTTS?? ("What does TurboTax say?")

FE

[David1980]

That could be extremely tricky:

1 - What is direct distance from job #1 location to job #2 location? (Are they perhaps the same??)

2 - You can only go that route when employee works the same day at both job locations.

3 - Assuming there is a Form 2106 issue, the 2% AGI limitation for Schedule A might make it all disappear!

4 - OF COURSE the client has contemporaneous records to support this travel, right?

WDTTS?? ("What does TurboTax say?")

FE

1. If they're at the same location I think he's gonna have trouble getting any deductions at all for this.

2. I'd hope if you were commuting from job 1 to job 2 that you were working at both places on the same day. I suppose you could end up with some technicality like a shift that ends at midnight with the next shift starting at 1am, that would be interesting to see what the courts did with it actually.

3. Yeah, but what other option does he have.

4. I imagine the records are a scrap of paper with "Please God, don't let them audit me" scribbled on it, they usually are.

"meal allowance for being on duty 24 hrs. is well documented, "

From the OP, what meal allowance are we talking about? Are you saying it's well documented that they don't get a meal allowance or that they do get a meal allowance?

[Davc]

For M & I, firemen, at best, get what is required by the employer to be paid into a common fund whether they eat or not. It's been through the courts and is brought up every year on every board.

[FEDUKE404]

more..

1. If they're at the same location I think he's gonna have trouble getting any deductions at all for this.

2. I'd hope if you were commuting from job 1 to job 2 that you were working at both places on the same day. I suppose you could end up with some technicality like a shift that ends at midnight with the next shift starting at 1am, that would be interesting to see what the courts did with it actually.

Actually I was just asking the questions, and I do NOT know the answers for this specific scenario.

Re #1 - Situation read as if employee perhaps continued workday as "volunteer." I agree there is very little travel if you don't ......travel.

Re #2 - For several years I had a part-time (moonlighting) job. On M-F I went from primary job to secondary job. On weekends, I would frequently work either Sat or Sun going nowhere near my primary job location. Therefore deductible travel M-F (A to B one-way distance only), non-deductible travel (commuting) on weekends. That was my point.

This entire scenario sounds like additional compensation, whether "food allowance" or "clothing allowance," that is being papered with a Form 1099-MISC. When all the dust settles I feel it is plain ole taxable income.

FE