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I receive a monthly car allowance that is taxed, and currently receive 14.5 cents for mileage. What, if anything, can I deduct on my tax return?

2007-03-03 12:43:06 · 5 answers · asked by Anonymous in Business & Finance Taxes Other - Taxes

5 answers

Yes. You can either add up all of your costs and apportion them between business and personal use and take the business portion OR you can use the mileage rate of 44.5 cents per mile. File Form 2106 to claim the costs or mileage rate. You must itemize deductions on Schedule A and this is subject to a 2% of AGI limitation as well.

IF your employer included the mileage amount he paid you in your gross wages on your Form W-2, you do NOT need to deduct the reimbursements. If the mileage portion of your car allowance wasn't included in your gross wages, you must deduct the those amounts on Form 2106. The flat-rate car allowance is not deducted since it was included in gross wages.

2007-03-03 13:40:10 · answer #1 · answered by Bostonian In MO 7 · 2 0

For mileage, you can deduct either the current federal mileage allowance or actuall expenses (business use only), either one less what you received as mileage reimbursement. The car allowance does not figure into what you are allowed to deduct.

2007-03-03 12:53:39 · answer #2 · answered by Brian G 6 · 0 1

I don't think so. Your employer is probably applying a withholding tax to your mileage as part of your wages/salary. If that is the case, you would need to declare your gas money as income. Ask your employer how to deal with it on your income tax return. He'll know.

2007-03-03 12:51:50 · answer #3 · answered by TitoBob 7 · 0 1

That basically enforces why the IRS scrutinizes the impressive, on the grounds which you're tax cheats. all of us be attentive to Romney refused to instruct his returns like another presidential candidate because of fact he replaced into hiding issues.

2016-10-17 05:14:10 · answer #4 · answered by dudik 4 · 0 0

If you use your car in the course of your work you can usually claim tax relief on the cost of running your car

2007-03-04 06:13:20 · answer #5 · answered by Robin C 4 · 0 0

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