How can I claim milage when I file my taxes?

Question

I DRIVE FOR WORK TO SALES APPTS I WAS TOLD I CAN GET UP TP 30 CENTS A MILE. IF THIS IS TRUE HOW DO I GO ABOUT DOING SO.

Answer 1

30 cents per mile is not correct, effective 1/1/07 the IRS rate is 48.5 cents per mile, fuel included. Tolls are not included in this amount. I assume you are an employee rather than an independent contractor. My answer would differ if the latter were the case. An employee claims unreimbursed business expenses on form 2106. That amount then flows to Schedule A (itemized deductions) as a miscellaneous itemized deduction subject to the 2% limitation. The total amount of of these expenses (Tax prep fees, tax prep software costs, portfolio management fees, investment expenses, safe deposit box fees, etc...) is reduced by 2% of your Adjusted Gross Income. (AGI) Your AGI is the amount on the last line of page 1 of form 1040. Your total itemized deductions must exceed the standard deduction to get any benefit.

Have you inquired if your employer reimburses for mileage? The employer is not required to give you back the full IRS amount but then the amount returned is not taxable to you under an accountable plan. If the employer reimburses, lets say 38.5 cents per mile, then you would report a net of 10 cents per mile on form 2106.

Answer 2

Mileage between appts is deductible for an outside salesperson. The amount is more like 40 cents I think. You claim this on form 2106, which is then carried to the Schedule A, Itemized deductions. If you do not have itemized deductions higher than the amount allowed you as a standard deduction, you cannot claim mileage. In the past, this was taken as an adjustment to income, and you did not need to be able to itemize to claim business related expenses. Presently, it is taken only if you have enough deductible expenses to itemize, usually only if you own your home and have mortgage interest and taxes.

Answer 3

You can yes claim it as a business expense...and it is more than 30 cents...I'm not sure if it's now 48cents or if it's 45 cents (seems like it always changes). For it to be a deduction I'm not sure if you'd be eligible because you do have to meet a minimun critriea for it to be considered as a deduction (I believe it's $2,500).

Anyways, be on the safe side and contact the IRS...you can go to their website or you can just call them and ask.

I work in taxes (in a very elite national accounting firm). And I did work for one of the Big 4's

Answer 4

Business mileage is an itemized deduction subject to 2% of your income. If you don't itemize, you don't get a deduction. The rate for 2006 was 44 1/2 cents per mile.

You should keep a log book of your mileage showing where you went, who you talked to and what was discussed.

Answer 5

The distance between your primary place of business, and your customers is tax deductible. You will need proof of the calls and the distance travelled (tolls are also deductible). An appointment book will suffice for the IRS. List the deduction on Schedule A, business deductions.

Answer 6

Depending on the details, it is deductible on either Schedule A or Schedule C. Read the instructions for these forms for more info. As other responders have noted, it is essential to keep a logbook to document all such deductions.

Answer 7

Tell your CPA. I record all my mileage in a mileage and expense log. It's imperative to have it recorded in case you are audited. Then let your CPA know about it. Of course, all of your deductions must reach a certain amount before they count.

There are several other deductions you can get...did you know that your medical copays and prescriptions are deductible? Check with your accountant about specifics.

Answer 8

you want to be certain the miles your purely motorized vehicle is used for company and amusement which skill you save a log of your miles, contemporaneously you identify with those files with the % of company use or the certain miles there are 2 concepts to declare mileage and once you identify which approach you take advantage of, you proceed the same approach as long as that motorized vehicle is the only getting used and definite, the quantity of company useage might want to all precise impact the outcome

Answer 9

I have done this in the past...and find the best way to do it is use a tax professional. They will be able to tell you the ins-and-outs and maximize your refund potential.

If you are filing on your own...you will have to use a long form.

Answer 10

You would have to record the miles travelled "while working" and report them that way. Travelling to and from work does not count.