Can I write off the cost of gas commuting to work on my taxes?

Question

I drive 120 miles to work and back a day, averaging about ~$250-300 in gas a month. Is there somewhere on the tax return form or some provision where I can write this off?

Answer 1

Wow! Tons of different answers. Which one is correct? Unfortunately, when it comes to taxes, there is never an easy answer.

First of all, if your job sends you a W-2 at the end of the year (and social security and medicare taxes are taken out of each paycheck), you are an "employee". If you work for yourself and get handed a personal check with nothing taken out and have to make quarterly payments to the IRS, you are "self-employed".

Assuming you are an "employee".....

If you only have one job and that job is in the same location every day and your company doesn't make you drive using your car for work purposes (getting lunch is not considered work purposes), then the easy answer is, you can NOT get any tax breaks for any commuting expenses including gas, tolls, parking, etc.

If your company does make you drive your car for work (making deliveries, seeing customers, going to other job sites) and they reimburse you for those trips (using an accountable plan), then you STILL can not get any tax breaks (because the company is paying for them, so you can't double dip).

The vast majority of people fall into those scenarios. However, you may be able to get a tax break if you:

- work two jobs in the same day and drive from the first to the second job without going home first. If so, keep track of your mileage from job 1 to job 2.

- work at a temporary work site and are not reimbursed by your company. If so, keep track of your round-trip mileage. This is true regardless whether the temporary job is closer to your home than your normal job. (example: you work at the Walmart in Shillington and on Wednesday, they want you to substitute for someone at the Camarillo Walmart.) This, unfortunately, does NOT apply to people without regular work locations like carpenters whose job site is at a different house every day. For those poor soles, they don't get any breaks (unless they are self-employed which I won't cover here).

- use your vehicle for work AFTER you get to work and are not reimbursed by your company. If so, keep track of your mileage. This includes visiting other company sites, visiting customers/suppliers, running company errends, etc.

- are working at a temporary job that is expected to last less than a year and is more than 50 miles further from your home than your last job was. If so, you can write off your round-trip mileage along with other goodies like meals and temporary housing.

Now the bad news. Even if you have qualifying miles as an employee, you may not get an actual tax break. You will add up all your work miles and multiply by the mileage rate for that year (something just north of 40 cents per mile). That goes on a Form 2106 along with any other unreimbursed work-relates expenses like tools, union dues, and special work clothes. From there, it goes on your Schedule A. Here is where the bad news comes in. You don't get credit for any unreimbursed work related expenses up to 2% of your AGI.

Say what?

You take your total Adjusted Gross Income (including your spouse's if married filing jointly) which is on the last line of the first page of your 1040 or 1040A and multiply it by 0.02 or 2%. This amount is subtracted from your work expenses because congress expects people to fork over up to 2% of their salary for work-related expenses. After this amount is subtracted off of your expenses, the remainder gets added to whatever else is on your Schedule A like mortgage interest, state taxes paid (either sales or income), and real estate taxes among other. If your Schedule A grand total is LESS than your STANDARD deduction ($5,000 for singles, $10,000 for married couples for 2005), you simply get the standard deduction and toss your Schedule A, Form 2106, and all your receipts in the shreader...you won't need them.

Why? The government lets you take whichever is higher, your standard dedustion or your Schedule A. Therefore, if you don't own an house and your state income taxes are fairly low, chances are that even if you have a few hundred unreimbursed work-related miles each year, your Schedule A will still be well below the standard amount and you won't use it.

Answer 2

Is Gas Tax Deductible

Answer 3

If you are working two jobs and go directly from one to the other, you can deduct the cost of gas between job #1 and #2. However, if you return to your home and then leave again to go to job #2, you will NOT be able to deduct mileage. If you are going directly to job #2, it is important that you keep an accurate account of what you are paying for each tank of gas and the mileage between the two jobs. Most people have one job and they are unable to deduct the cost of gas (government might have to pay back a couple of dollars more on income tax returns, and they aren't going to do that).

As for where you put this information on your tax return, contact the IRS. They will be able to help you.

Answer 4

There is a way. While normal commuting is generally not deductable, if you have a home office and a second job, then you can deduct the milage between jobsite 1 and jobsite 2. If jobsite 2 happens to be in your home, then you are in essence deducting part of your commute.

As always, keep written records. The IRS looks at Schedule Cs real close.

Answer 5

no you cannot. you can put it on your schedule a under employee expences but it has to exceed 2% of your adjusted gross income, plus exceed the standard deduction, which at 300 a month, i doubt you will and when you get audited, they will want to see those receipts and when you tell them it was for commuting they will deny it. You can only deduct it if you used your vehicle for something for the job, ran to the post office, the office supply store, etc. not commuting. go and buy a hybrid and you will get a tax credit and save you in gas money. if you are self employed, they will deny commuting as well, unless on your way to work you stopped by a client's house and on your way back or the post office, etc, etc.

Answer 6

No.

Commuting to and from work is not a deduction for tax purposes regardless of whether you are an employee or self employed.

Answer 7

I have my own business too and the only miles you can deduct are miles driven for your job, not miles that you drive from home to your employment or back. For example I own a restaurant and when I drive to the store to get something for it I can write off that mileage to the store and back. I cater...if I meet with a client at their location...I write off that mileage.

Answer 8

You may be able to if you can itemize your deductions and the nature of your job. Your deductible expenses would have to exceed your standard deduction. You can eiether write off gax, maintenance, repair, etc., or take the standard mileage. You can't do both. But you would be expected to have written proof of the miles driven if asked.

Answer 9

Your normal commuting cost/expenses are not deductible. Simply put, job to job mileages are deductible. I hope this helps.

Answer 10

Yes You Can! Itemize on the 1040 under job expenses, but you need to save all of your reciepts. If you have a job that travel is part of your everyday expense, get a plastic bag and put it in your side pocket of your door. Every weekend empty it into a folder and save for Tax Day!