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Income question

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Llhg71
Established Member

Income question

My husband receives reimbursement check for mileage every month. Should we report this as income when we apply for a mortgage?
Message 1 of 10
9 REPLIES 9
JM-AM
Valued Contributor

Re: Income question

Is it claimed on his taxes?

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Message 2 of 10
Llhg71
Established Member

Re: Income question

No.
Message 3 of 10
Mike_B03
Valued Contributor

Re: Income question

Then I believe it does not count. Which is weird because you would think it should, but that also mans he should pay tax on it just like another income...so why no taxes?
Message 4 of 10
Llhg71
Established Member

Re: Income question

We don't pay taxes on it because it's a reimbursement for vehicle expenses. He is also paid an hourly wage so it doesn't fall under self-employment.
Message 5 of 10
Mike_B03
Valued Contributor

Re: Income question

You can be an hourly wage employee (receiving a W2) and get wages outside of the hourly pay, there is a line on the W2 for "other". I get reimbursed for medical insurance and this is where it's listed on the W2.

In your situation obviously not much that can be one now, but I don't think it can be counted as income if its not in the taxes.
Message 6 of 10
203bravo
Established Contributor

Re: Income question

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.

Message 7 of 10
webhopper
Moderator Emeritus

Re: Income question

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.

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Message 8 of 10
MovingForward_2012
Valued Contributor

Re: Income question

It is not income, it is reimbursement for the gas used to travel for work. You paid for the gas already so you are just being reimbursed the cost. If the deposit is fairly large, you may have to source it. But it isn't income. It's your income being paid back to you.
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Message 9 of 10
Llhg71
Established Member

Re: Income question

I just wanted to double check.  I didn't want to make the mistake of mentioning it if I didn't have to.

Message 10 of 10
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