I receive a $350 per month car allowance from my employer and 14.5 cents for mileage. Can I deduct the difference in the mileage reimbursement I receive from the 44.5 cent mileage rate? I drove 18000 miles for business in 2006.
2007-03-04 01:37:10 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
You can take a mileage deduction of 44.5 cents per mile less your reimbursements.
You received mileage 30 cents per mile below the federal rate, or $5,400 below the allowable federal mileage. From this you subtract your car allowance of $4,200.
Your unreimbursed mileage is $1,200. Use Form 2106 to figure this and transfer to Schedule A.
2007-03-04 01:52:46 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
Yes. You add up all the miles and multiply times the federal mileage deduction. Then subtract the amount you were paid from your employer. if you use a tax program like Tax Act, (the cheapest) it allows this and figures out the proper deduction for you.
2007-03-04 09:42:13 · answer #2 · answered by chimneygod 3 · 0⤊ 0⤋
Check with the irs web site. I think you will have to declare $4200 as income, your car allowance. You will be allowed to charge $5.200 as mileage expense. 18000 miles x $0.445 - 18000 miles x $0.145 = $5200. Perhaps a net deduction of $1,000. The IRS site is really great! It gets better every year.
2007-03-04 09:55:41 · answer #3 · answered by g_steed 7 · 0⤊ 0⤋
Yes you can. You'll claim the car allowance as income, then deduct the mileage.
2007-03-04 17:18:30 · answer #4 · answered by Judy 7 · 1⤊ 0⤋