I live in MN. I work at a small sub shop that delivers. They pay me 50cents a delivery. And with gas being $2.50 a gallon here, im getting extremely ripped off. I have to use my own car also.
I read yesterday somewhere that According to the law or something im suppose to get 48cents a mile if im using my own car for work. Is this True?
Or is there something like this, that is true? And if so, could you provide a link to the legal information.
Most helpful answer gets the Points
2007-04-20 04:14:49 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
When you file your income tax return, you can deduct mileage at 48.5 cents a mile for the deliveries. This doesn't mean that the shop would have to pay you that, just that you can deduct that much from your taxable income. The people above who said he's supposed to be paying you that much are wrong. There are minimum wage requirements that probably cover you, but there is no law on what he must pay you for making deliveries - that's for you and him to agree on.
Do you work for them in the shop, and also make deliveries? If so, you probably get a W-2 from them. When you file your tax return, you have the choice of taking a standard deduction or itemizing. If you itemize you can deduct the mileage as a non-reimbursed employee business expense, but would have to subtract 2% of your income from the total, and only deduct the amount that's over that. You'd have to have enough to itemize, so would only do that if your total eligible itemized deductions was larger than your standard deduction. If it isn't, the standard deduction is to cover things like that.
If you get a 1099-misc from the sub shop, then you would deduct the milage on your schedule C where you report your 1099 income.
You could talk to your boss and tell him that with the price of gas, you just can't afford to make the deliveries for 50 cents, that just the gas costs you more than that. If the typical delivery is within a few miles, then a dollar or two would probably cover your expenses. See if he's willing to increase the amount he gives you for deliveries - that would be fair. If he won't, and you're losing money making the deliveries, look for another job.
Do you get tips when you deliver? I assume you do - those would probably go a long way toward covering your costs, plus some. And by the way, tips must be reported as income on your tax return.
2007-04-20 05:14:38 · answer #1 · answered by Judy 7 · 4⤊ 1⤋
There may indeed be times when it actually costs more to have a job. I once worked for a copy machine company that required us to buy a van to haul and show the machines. They paid an “allowance” that was fully taxed as opposed to reimbursed expenses. The allowance looked great until I saw how much the IRS was taking. Further, the allowance negated the ability to deduct gas and maintenance from my taxes. That job actually cost me more than I earned. Like Thomas O. said below “Ask for mileage reimbursement. If they won't give it to you, decide whether it's worthwhile to keep the job. Either quit or deal with it.”…..OR…..try the independent contractor route if you can deal with the paper work.
2007-04-20 12:50:20 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Are you even receiving the criminal minimum salary on your area? the quantity you're spending on gas, despite if it is subtracted out of your hourly salary plus his repayment won't comprehensive to the criminal hourly minimum salary interior the area. it is beneficial to touch the dept of hard work or its equivalent on your state to ascertain greater. Then perhaps report a perfect grievance, in case you weren't paid on the criminal minimum hourly value ( Your comprehensive internet hourly salary or repayment is decrease than the State and Federal minimum salary rules.) you have got some decrease back pay coming to boot for as long as you have worked decrease than the minimum salary. Has this enterprise taken out out of your paycheck Social protection and/or Federal,state and native earnings taxes? while you're working "off the books " your case is greater stable to instruct or maybe question in an all money enterprise. despite if as a bargaining chip...you besides would would desire to envision your social protection account to ascertain it it is been perfect credited. Have they been taking withholding taxes out yet no longer sending the withheld money quarterly into the IRS? If no longer, checklist them to the IRS and you may assemble a reward for a proportion (30%?) of all recovered sales and unreported taxes. it is in lots of situations executed anonymously with out giving your call. The IRS has a variety to checklist this tax evasion. yet once you are trying this, greater then possibly they're going to discover some reason to fireplace you. Why do no longer you merely start up your guy or woman pizza transport enterprise.? you recognize this shopper base and specific could make greater useful pizza then this much lower priced skate besides? Borrow your mom's oven and kitchen till you are able to discover the money for to hire a storage or shop front.
2016-12-26 16:36:38 · answer #3 · answered by joto 4 · 0⤊ 0⤋
Ask for mileage reimbursement. If they won't give it to you, decide whether it's worthwhile to keep the job. Either quit or deal with it.
2007-04-20 09:29:06 · answer #4 · answered by Thomas O 2 · 0⤊ 0⤋
Well i get paid $0.25 per mile for my driving expenses, and my car gets about 17 miles per gallon. Depends how many miles to the gallon your car gets....also, your job can be done by almost anyone, therefore it's not going to be high paying.
2007-04-20 04:19:37 · answer #5 · answered by teddy 2 · 0⤊ 2⤋
I encourage you to contact your labour standards office. They will be able to assist you with your challenge. Good luck
2007-04-20 04:24:06 · answer #6 · answered by xoxodolphin 3 · 0⤊ 3⤋