Gas Expenses Reimbursed

My friend uses her car for work and submits her gas receipts to her employer who reimburses her completely. When my friend files her tax return, she uses her actual mileage and claims the maximum mileage amount that the the IRS allows.

It seems to me that she is not doing this correctly since most of the expense of operating her car (the gas) is really being paid for by her company. Is what she is doing legal?

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Income Tax Questions.

Please subscribe to my monthly newsletter, Bookkeeping Basics E-zine. It tells you each month about the new information that I have added, including some great tips and advice from myself and other Bookkeeping Basics readers.

Enter Your E-mail Address
Enter Your First Name (optional)

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you Bookkeeping Basics E-Zine.