I have recently started a job as a disability support worker and have to use my own car for work, I get reimbursed for the travel I do while with participants. Is the reimbursement a taxable income? I get paid 96c per kilometre. For my recent paid and was taxed $658 because my travel allowance and pay were grouped into 1 taxable income. Is this correct or should the reimbursement be done separately. Thanks in advance
It is still taxable income, whether shown separately or not.
You should be able to claim kms as a deduction at Item D1 - but not at 96 cents.
It is still taxable income, whether shown separately or not.
You should be able to claim kms as a deduction at Item D1 - but not at 96 cents.
Why not at 98c? I worked it out and I'm running at a loss in tearms of fuel costs after the tax is applied. Would that also mean I'm not able to claim it back at tax time. Thanks for replying.
Reimbursements that are treated as taxable income are typically those that are not directly related to deductible business expenses. In the case of using your own car for work and receiving reimbursement based on kilometres traveled, this amount may be considered taxable income. Ideally, reimbursements for work-related expenses should be separate from regular pay and clearly documented as such. This separation helps ensure that the reimbursement is not included in taxable income calculations. It's important to note that while reimbursements may be taxable, you may also be eligible for tax deductions related to work-related expenses, such as mileage expenses for using your car for work purposes. These deductions can help offset the taxable income. Taxation policies can vary by country and even by region within a country. It's advisable to consult with a tax professional or accountant who is familiar with the specific tax laws and regulations in your area. They can provide personalized advice based on your individual situation.
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