How to deduct work travel mileage from my husband's unreported stipend?

Thanks for explaining but I'm still confused. The stipend is specifically for travel costs, so shouldn't that be non-taxable if we're using it all for work travel? And what about if he's a W-2 employee but this extra money is paid separately - does that change anything?

If the stipend is specifically designated as a travel reimbursement that follows an accountable plan, then it might not be taxable. For it to be an accountable plan, your husband would need to track expenses, provide receipts to his employer, and return any excess amounts. If he's a W-2 employee and the stipend is paid outside normal payroll but isn't part of an accountable plan, it's still considered taxable compensation. Unfortunately, with the tax changes from the Tax Cuts and Jobs Act, employees can no longer deduct unreimbursed business expenses (including mileage) until after 2025.

Did they actually help you file or just give advice? I'm in a similar situation but with a per diem that's paid outside payroll and I'm afraid I've been doing it wrong for years. Wondering if they would flag anything that might trigger an audit.

How long did the whole process take? My spouse is getting a monthly vehicle allowance that's not on her W-2, and I'm worried we're handling it incorrectly. Our tax appointment is in two weeks.

They provided detailed guidance on how to file correctly - they analyzed my documents and showed me exactly what forms to use and how to fill them out. They don't file for you, but they make it super clear what you need to do. The whole process took about 48 hours from when I uploaded my documents. They'll look at your specific situation and let you know if there are any red flags. In my case, they showed me how to properly document everything to avoid audit concerns.

Wait, this is a real service? How does it even work? I thought the IRS phone system was just a black hole where calls go to die...

Sounds like a scam. Why would I pay someone else to call the IRS for me when I can just keep calling myself? And even if you do get through, most IRS agents give conflicting answers anyway.

It's basically a service that navigates the IRS phone system for you and waits on hold. When they reach an agent, they call you and connect you directly. No more sitting on hold for hours only to get disconnected. I was definitely skeptical too, but when you've been trying to get through for weeks with no success, it's worth trying something different. I actually got consistent answers from the agent I spoke with - they confirmed exactly how to handle my unreported travel stipend and gave me specific regulation references I could point to if questioned.

That's actually a really good point I hadn't considered. The stipend comes separately from his regular paycheck, as a check with no taxes taken out. His manager just told him it was "non-taxable" for travel expenses but we've never received any official documentation about it. Should we ask his employer to clarify this in writing?

Definitely ask for clarification in writing. Request a formal policy document explaining how their travel reimbursement program works. If it's truly meant to be an accountable plan (non-taxable reimbursement), they should have policies requiring documentation of expenses, business purpose, and returning excess amounts. If they can't provide this documentation, that's a red flag that they may be improperly handling these payments. In that case, your husband should keep meticulous records of all his business travel - dates, destinations, mileage, purpose of trips - and all stipend payments received. This documentation will be crucial if there's ever an audit.

What's the deadline for having an accountable plan in place? If her husband's company hasn't been treating it as an accountable plan but they start now, does that fix the issue for this tax year or are they stuck?

Unfortunately, an accountable plan needs to be established prospectively - you can't retroactively create one to fix past tax years. The IRS requires that the accountable plan policies be in place before the reimbursements are made. For this current tax year, if the company hasn't been following accountable plan rules (requiring expense reports, business purpose documentation, etc.), then those stipend payments should be treated as taxable compensation and included on the W-2. However, the company could establish proper accountable plan procedures going forward for next year. They'd need to create written policies requiring employees to submit detailed expense reports with receipts, document the business purpose of each trip, and return any unused funds within a reasonable time period (typically 120 days). @Danielle Mays - for this year s'taxes, you ll'likely need to report the stipend as income and unfortunately won t'be able to deduct the mileage as an employee under current tax law.