A Tax Write-off question?

Question

Ok I'm new to the whole tax write-offs and so forth.

I had a question or two about this.

First can someone exlain to me breifly a little about them.

Second: I work 50 miles away from my home and i drive 100 miles a day just for work. WEll i bought a car mainly for this.
I financed a car out of my own pocket no company vehilcle and its main porpuse is for work. I was wondering if i save my payment receipts and stuff if i woud be able to write this off when i file my taxes next year? Also should i save my gas receipts for this too? Will this benefit me and what all will it do?

thanks

Answer 1

You get no deduction/write-off for just driving to work and back. Sorry, but there's no need to save any receipts.

Answer 2

As to the car, miles going from your home to your main workplace and back are not deductible. If after you get to your job, you have to drive your car during the workday to other sites and aren't reimbursed for it, keep track of those miles since they could be deductible. If you do have deductible miles, then you can either save receipts, or take a flat allowance per mile of 48.5 cents for 2007.

When you say write-off I assume you are talking about itemized deductions. Download 1040 schedule A and its instructions - that will show you what items can be deducted.

There are other items called adjustments and credits that can also lower your tax bill if you are eligible for any of them. Downloand a 1040 form - most of them show there, and are explained in the instructions.

Not trying to dodge your question about writeoffs, but it's too broad a question to even try to answer here.

If you have your own business, rather than being an employee of someone else, it gets even more complex.

Answer 3

We are an accounting firm and relate the following. We have prepared more returns for these matters than we care to even consider for small business, individuals, large business and otherwise and have also been involved in audits considering the same.

According to I.R.C. Normal commuting miles are not deductible. i.e: driving back and forth to your primary job.

According to I.R.C. you may wish to review http://www.irs.gov and type in Unreimbursed Employee Business Expenses, if you actually do drive the car for work when you are working for the employer and not getting anything back for it. Aka this does not as mentioned inlcude driving back and forth to and from your primary place of employment. For example.

Make sure you read the rules carefully such forms and otherwise relating to business uses of a car, are highly subject to audits. Miles, etc. Depreciation and otherwise.

This is the question: If you drive your car to and from your work none of the expenses or oterwise depreciation etc. are deductible as they are normal commuting expenses. If you drive the the car to work then take car to the cleaners to pick up your bosses clothes during the time you are on the clock and otherwise, and run errands while at work for work related matters then this may be deductilbe and the percentages used etc. should be based on a logical consideration of what is what as would be the miles and otherwise.

Again, read the rules carefully before you take any deduction when it comes to using your car as a write-off in a job in which you are an employee.

Review Automotive expenses as well at the same website.

BC Business Services, Inc.
http://www.bcbsinc.com

Answer 4

If the car is just used for commuting back and forth to work, there are no deductions for it. We all choose where we want to live and work and, whether your commute is 2 miles or 200 miles, commuting is not deductible. Interest paid on the car is personal interest and also non-deductible.

For a list of deductions, see the bottom of page 1 of the 1040 and Schedule A.

Answer 5

Alas, your normal commute to work will not be deducatble on your federal income tax return.

I believe you're asking about itemized deductions (schedule A on a federal 1040 form) when you ask about tax write-offs.

Unless you have a mortgage, you are probably going to be better off taking the standard deduction over itemizing.

Some of the categoriges that you can itemize:
Medical and Dental Expenses, Taxes you paid, mortgage interest you paid, gifts to charity. For job travel, you can deduct travel expenses that are outside of your normal commute if they are not reimbursed by your employer, and are over 2% of your AGI.

I hope that helps.

Answer 6

Your mileage, postage, expenses of resume production, toll calls, lodging and shuttle for an out of city interview, are all deductible on time table A Miscellaneous Deductions, to the quantity those deductions exceed 2% of your earnings. Interview outfit isn't deductible.