• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Is Auto Allowance taken into consideration?

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

Status
Not open for further replies.

momofrose

Senior Member
What is the name of your state? NJ

Just wondering - if someone receives an auto allowance from their employer..is that considered "income" from which child support can be calculated?

Thank you.
 


nextwife

Senior Member
AS someone who gets an auto allowance, SPECIFICALLY because my job requires me to scoot all over four counties all the time, incurring far greater auto expenses, maintenance, gas and added business use insurance costs than a "stay in the office" employee does, I'd sure be ticked off if my so-called reimbursement" that doesn't begin to cover the cost of driving on behalf of my employer, was THEN counted as "income" for CS. MY auto use FOR BUSINESS is actually far greater than my lousy auto allowance gives me!
 

moburkes

Senior Member
AS someone who gets an auto allowance, SPECIFICALLY because my job requires me to scoot all over four counties all the time, incurring far greater auto expenses, maintenance, gas and added business use insurance costs than a "stay in the office" employee does, I'd sure be ticked off if my so-called reimbursement" that doesn't begin to cover the cost of driving on behalf of my employer, was THEN counted as "income" for CS. MY auto use FOR BUSINESS is actually far greater than my lousy auto allowance gives me!
But, isn't the auto allowance included in your pay at the end of the year? (Just curious)
 

momofrose

Senior Member
AS someone who gets an auto allowance, SPECIFICALLY because my job requires me to scoot all over four counties all the time, incurring far greater auto expenses, maintenance, gas and added business use insurance costs than a "stay in the office" employee does, I'd sure be ticked off if my so-called reimbursement" that doesn't begin to cover the cost of driving on behalf of my employer, was THEN counted as "income" for CS. MY auto use FOR BUSINESS is actually far greater than my lousy auto allowance gives me!
His situation is not like yours though - he is a project manager for one location. He does not go anywhere but back and forth to work and inside the project (housing development). I might also add that it an auto allowance that is fairly substantial.

Thanks
 

nextwife

Senior Member
But, isn't the auto allowance included in your pay at the end of the year? (Just curious)
It is, but my accountant then backs my auto expenses OUT of my income on my taxes. I'm required to have special auto insurance (which I pay out of "reimbursement), I don't get gas, so my gas costs are huge, as I must sometimes visit two or three county courthouses in one day, the reimbursement is to be applied toward gas. I pay parking meters to pick up documents from banks, law firms and mortgage companies.

Anyway, it's a wash, at best. Certainly if I got an auto allowance, and was NOT running my own car around and using it up prematurely on business, it would be different.

I know my auto use is far from being extra money - it's sort of a help in covering all the auto use my empolyment requires. If I had the SAME income sitting in an office, and didn't get an auto use, I'd actually make MORE money.
 

momofrose

Senior Member
It is, but my accountant then backs my auto expenses OUT of my income on my taxes. I'm required to have special auto insurance (which I pay out of "reimbursement), I don't get gas, so my gas costs are huge, as I must sometimes visit two or three county courthouses in one day, the reimbursement is to be applied toward gas. I pay parking meters to pick up documents from banks, law firms and mortgage companies.

Anyway, it's a wash, at best. Certainly if I got an auto allowance, and was NOT running my own car around and using it up prematurely on business, it would be different.

I know my auto use is far from being extra money - it's sort of a help in covering all the auto use my empolyment requires. If I had the SAME income sitting in an office, and didn't get an auto use, I'd actually make MORE money.
Ok - this situation is completely different (as I stated before) he is not carrying around special insurance on his vehicle (which is a 12 year old ford pick up) and he goes nowhere that would substantiate a car allowance of $140.00 every two weeks.
 

fairisfair

Senior Member
according to what I found, NJ child support is based on the Net monthly income of the parents, so if that car allowance is in his net income, then it will most likely be considered.
 

nextwife

Senior Member
according to what I found, NJ child support is based on the Net monthly income of the parents, so if that car allowance is in his net income, then it will most likely be considered.
If it's NET, then presumably legitamate business use auto expenses can be adjusted against the allowance. An allowance that creates EXTRA money should be counted toward income, an allowance that is a partial reimbursement for extra auto COSTS associated with performing one's job should count against the auto related costs.
 
Last edited:

fairisfair

Senior Member
If it's NET, then presumably legitamate business use auto expenses can be adjusted against the allowance. An allowance that creates EXTRA money should be counted toward income, an allowance that is a partial reimbursement for extra auto COSTS associated with performing one's job should count against the auto related costs.
No, that is not their definition of Net. Net is gross less taxes and a few other allowables.

I think we may be confusing car allowance with mileage reimbursement here.
 
Last edited:

nextwife

Senior Member
No, that is not their definition of Net. Net is gross less taxes and a few other allowables.

I think we may be confusing car allowance with mileage reimbursement here.
Don't know. I get a fixed auto allowance added to my monthly paycheck. Some months the allowance is far less than the costs (esp gas) that I incur driving only for my business. Some months, I may do less driving, or gas costs may be down. So last year I was really in the hole as to allowance vs. actual. So far THIS year, because I'm not paying over $100 each week just to fill the tank for them, I'm in better shape as to my allowance vs. actual business auto cost. But overall, figuring the added obsolescence, insurance, gas and maintenance, I know I'm sure NOT ahead from my auto allowance. It only keeps me from going broke using my car for my work.
 

GrowUp!

Senior Member
I thought as much - thank you.
So you were looking for the answer you WANTED to hear, not necessarily the correct, LEGAL answer, huh? Especially since only one person responded in this thread who has experience with gas allowance. Make that 2. :rolleyes:
 

nextwife

Senior Member
Wonder if going to work for someone who DOESN"T give you an auto allowance then results in an income being imputed that INCLUDES an AA, because not having one would be considered underemployed?:eek:
 

nextwife

Senior Member
The problem is that employers such as mine intend that the auto allowance they pay will be used to make it affordable for their reps to cover a lot of ground, make a lot of stops , call on a lot of customers. It SUPPOSED to generate sales, by generating calls. And it DOESN'T go up as gas costs go up. I've been getting the same allowance for four years.
 
Just wondering - if someone receives an auto allowance from their employer..is that considered "income" from which child support can be calculated?
Yes, an auto allowance is a form of renumeration that can be taken into account when calculating support. However, don't start counting the $3640, yet -- as you can see, there are many arguments as to why (or to what extent) such an allowance should or should not be considered. Smoke and mirrors.

My employer provides me with a new luxury vehicle several times a year. My employer picks-up all of the insurance, preventative maintenance, and all of the fuel I can burn. I absolutely do not need this perk to perform my job duties. My ex's att'y estimated this "income" to equal $9600/yr. My att'y rattled-off some gobbledy-gook about the fact that I have my own autos and would turn-in the perkmobile if the court so desired...but that the perkmobile certainly might help facilitate my visitation, etc. I kept my mouth shut. The judge decided not to consider the perk as income. Smoke and mirrors.

My situation definately sounds more black-and-white than your situation (or nextwife's). It will probably largely depend on the judge and who is able to make the better argument.
 
Status
Not open for further replies.

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top