January 4th, 2008 by Questions
If a person has a meal allowance (or living out allowance) from their employer, while on a job, is that allowance considered part of their income?
One Response to “income allowance”
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January 07, 2008 at 11:23 am, A licensed trustee said:
Yes, all/any type of money you receive on a regular basis is likely going to be treated as income for the purposes of calculation your surplus income payment in bankruptcy.
If you are paid that allowance to compensate you for out of pocket expenses you incur on the job then most trustee will allow you to deduct the portion of the allowance you actually spend from the money received.
For example, if you receive an allowance of $25 a day for meals while out of town and you spend $20 (and keep the receipts) you’d only have to add $5 to your income. If you spent more than $25 you wouldn’t have to add anything.