How to Make a Car Allowance Non Taxable: IRS-Compliant Options

A traditional monthly car allowance cannot become non-taxable merely because an employer calls it a reimbursement. To make vehicle payments tax-free for federal payroll purposes, replace the unconditional allowance with an IRS accountable plan that requires a business connection, timely substantiation, and return of excess amounts. Key Facts at a Glance Why Is a Flat […]