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Is it claimed on his taxes?
it's not income since you are simply getting back money that you spend.... likewise if a company issued a gas credit card for travel use in personal vech that would not be income either... same thing.
This is not income, in the same way that per diem paid to workers who are conducting work out of town is not income that can be used to qualify for a mortgage.
Does your husband claim deductions on the mileage?
If he did in fact claim the mileage income, and then the appropriate mileage and meals deductions, then I would say that yes, this is income.
But in your case, its just not income, unfortunately.
If it helps anything, I had some rather large deposits that were work expense reimbursements from my employer and were hitting my bank account during my FHA refinance back in the Fall of 2012. I had to write Letters of Explanation for these deposits, but they were not income by any stretch of the imagination. Some were for mileage, others were for hotels, planes, etc.
I just wanted to double check. I didn't want to make the mistake of mentioning it if I didn't have to.