Can i deduct gas from my taxes for going to work and school? I file my own taxes.?

Question

I work for my cousin and receive paychecks from him. I don't get any deductions on my paycheck and i have to file my own taxes come tax time. He files his own taxes as well. His book keeper sends me a w-2 showing how much i made and i go to my tax person and file a 10-99 and pay whatever i owe. Now since I fill up the car am i entitled to have tax deductions for gas with receipts? and i was also wondering can i have tax deductions for medical payments such as going to the dentist? I've paid a good amount this year for the dentist. I don't have any kind of health insurance or health coverage. How about a tax break since i go to college? Thanx for all the help.

Answer 1

You mention a W-2 with no deductions, and a 1099. If you received a W-2, Boston is correct. If in fact you are an independent contractor, and received a 1099, you may be entitled to some deductions. You can not deduct commuting expenses. However, independent contractors can deduct the cost of traveling to job sites. If you are traveling to various job sites, you may be entitled to mileage deductions. If you are using a competent tax preparer, they should have already taken the deductions you are entitled to. I would suggest you review your return with your preparer to be sure they understand your work situation. If you aren't confident they have properly prepared your return, take it to an independent CPA. Again, all of this is predicated on you being an independent contractor. If your not, you can't deduct your transportation costs.

Answer 2

I think you're confused - he probably gives you a 1099, not a W-2. A W-2 is for employees, and the employer is required to take out taxes.

Commuting expenses aren't deductible - that's going from your home to your principal place of work. If your work includes driving during the course of your work time, then some auto expenses might be deductible, but not all of what you spend.

As far as medical, you can only deduct that if you itemize your deductions, and even then, medical is subject to various restrictions. So while it's possible, it's pretty unlikely that you could. But keep good records including receipts, and ask your tax person - he or she will have enough information to be able to tell whether you can itemize or not.

There are various tax breaks for college tuition and fees - you might be eligible for one of those. There's not enough info in your question to tell what you might be eligible for. If anyone can claim you as a dependent, then they'd be eligible for the college tax breaks, you wouldn't.

Answer 3

Sorry, but there's no deduction for gas for your car to go to work or school. Those are commuting costs, which are never deductible.

You can deduct unreimbursed medical expenses that exceed 7.5% of your Adjusted Gross Income if you itemize your deductions. They'd have to exceed your standard deduction which is $5,350 for 2007 to be worth deducting.

There are tax breaks for college tuition and the interest on student loans. Your tax preparer can explain those to you.

BTW, your tax preparer prepares a Form 1040, 1040A or 1040-EZ, not a Form 1099. A Form 1099 would be sent to you to reflect the payment of certain types of non-wage income such as dividends, interest, or non-employee compensation.

Answer 4

Thanks to slick willy I have to ask for clarification on what you mean. Did you get a 1099 for your work? Exactly what do you do for your cousin? I am trying to determine whether or not you can take a mileage write-off; in 2007 you are allowed 48 1/2 cents a mile. If you are self-employed and receive a 1099 and use a vehicle for business purposes you have a go. On a seperate note; or page; if you itemize on Sch A you can deduct a portion of your medical expenses, mileage and insurance. If you have no health insurance, welcome to america, the only industrialized nation on earth without universal health care. Germany, Japan, Ireland, Scotland, the list goes on, all have it but the greed of the american corporate bottom line buys off the vote every time.