I have a driving paper route. Can I deduct mileage on my taxes?

Question

If yes, what records do I need?

Thanks for the answers so far! I am working as an independant contractor and will get a 1099-Misc.

So far, I have only kept track of how many miles I go a day (28, 7 days a week), but not the actual mileage. Should I do the actual mileage from now on? I am pretty sure I can't deduct my gas but I can deduct my oil changes, right? What about any/all repairs?

Answer 1

You can deduct mileage OR actual expenses. So if you deduct mileage, you cannot deduct gas, oil changes, repairs, depreciation, etc.

If you take the standard mileage in the first year you use the car, then you can switch between standard mileage and actual expenses every year. If you use actual expenses in the first year, then you have to stick with that method every year.

In either case, you should keep a log of your mileage for business and personal use because you need to use that to determine the % of actual expenses you can deduct if you use that method.

Answer 2

Yes, you can deduct mileage on your taxes, but the big question is whether you are an employee getting a W-2, or are you an independent contractor getting a 1099-Misc. If you are getting a W-2 then the mileage that you put on for driving the paper route would be reported on form 2106 - Employee Business Expenses, which would carry over to Schedule A - Itemized Deductions, line 20. If you are an independent employee you would report the mileage expenses on either Form 4562 or directly on your Schedule C, Page 2, Part IV, which would carryover to Page 1, Part II, line 9 - Car and Truck expenses. The mileage rate for 2007 is 48.5 cents per mile, and you would be able to deduct your business miles. What records you need should be a log of how much business miles you drive each day, but if you drive the same route each day then all you would need is one days mileage and multiply it by the number of working days for you in the year. You have the choice of taking either mileage or actual expenses (gas, repairs, the cost of the vehicle, insurance, vehicle registrations, inspections, etc), but only to the business % (if your business % of your driving was 90% of your total miles for the year you could deduct 90% of your actual expenses). The IRS does let you deduct Motor Vehicle Excise taxes, and interest on a vehicle loan whether you take mileage or actual expenses, but again only for the business %. Also, you would have to deduct from your expenses any reimbursement you received from whoever pays you for the driving paper route.

Answer 3

I assume you're working as an independent contractor, not as an employee of the newspaper.

You can definitely deduct mileage. Keep a log of how far you drive each day - maybe get a little calendar, keep it in the car, and write the miles on each day's block. If you don't have it for the first part of the year, figure out the distance you drive each day for your route, and the number of days you deliver, and multiply those to get the miles driven.

Answer 4

As an assistant manager at a gas station, I can tell you that in Ohio, several of my customers keep records of their gas consumption for work purposes. Specifically, if your employer doesn't give you a company issued credit card (aka reimburse you for the mileage), then keep track of your fill-ups by using one specific credit card that is reserved only for those purchases. Many fuel companies have credit cards that can only be used in their stores, such as the SuperFleet card by Marathon Oil Company (can be used in any of their affiliates and any number of restrictions and mileage options can be added to the card). Just by having that information and providing it to your tax agent, they can determine if you can be reimbursed for the fuel taxes that you paid on those purchases.

Answer 5

Yes you can, just keep track of miles and gas used.

Answer 6

write down milage each week...save gas receipts...have an accountant do your taxes....you might save more with the standard deduction than with this, though