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Frustratedjohn
December 30, 2024
Question

Reduce reportable vehicle allowance by vehicle expenses before W-2 created

  • December 30, 2024
  • 1 reply
  • 0 views

We have a vehicle allowance that is, of course, taxable income. How do I enter business mileage and tolls in QBO to reduce the taxable amount reported on the W-2? Every answer I am seeing online discusses various ways to track the expenses for the accountant to then generate the W-2s. But, QBO is going to generate the W-2s and there must be a way to adjust what is going to get reported vs issuing a W-2c. A call to QB was not helpful as the accounting unit said that it is a payroll question and transferred the call to payroll who argued that is an accounting questions and then ultimately argued that it is my a question for my accountant who said that it is a software question. Am I the only one in the world with vehicle expenses to essentially take against a vehicle allowance?

1 reply

J
JaneDave_I
December 31, 2024

Let me share some insights about reducing your reportable allowance through vehicle expenses in QuickBooks Online, John.

Currently, we're unable to apply business mileage and tolls to reduce your taxable income, as QuickBooks Online (QBO) has distinct policies and treatments for handling vehicle allowances and vehicle expenses. While you can manually enter vehicle expenses into QuickBooks for record-keeping purposes, please note that this will not automatically adjust the vehicle allowance reported on your employees' W-2 forms.


To address this situation effectively, I suggest reaching out to our Payroll Experts Team. They are well-equipped to assist you in making the necessary adjustments to the taxable income amounts reported on your W-2 forms.

Here's how to reach them:
 

  1. Sign in to your QuickBooks Online (QBO) company.
  2. Select (?) Help in the upper right corner of your screen.
  3. Type a question or topic you need to help with, then select Contact a human.
     

To check for our Support hours, please refer to this article: Contact Payroll Support.

Additionally, let me share these resources that will guide you in modifying your payroll preference for your year-end payroll work.


You can keep me in the loop if you need any further assistance with your reportable vehicle allowance and vehicle expenses that need to be reflected on W-2 forms. I'm just a post away and always ready to help ensure everything is set up correctly for you.

F
FrustratedjohnAuthor
December 31, 2024

Thank you, JaneDave_I but I was on the phone with the "payroll experts team" for an hour and seven minutes yesterday to no avail. I'm not asking for tax advice. I'm asking how to create an expense against the allowance. Thus, the net allowance is reduced that is ultimately reported on the W-2. A quick review online will reflect that many, many people are looking for this solution.

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