It pays min wage plus .15 per mile. The company furnishes a gas card for gas. It will be about 4 hours per day and around 200 miles per day. Since the company is paying for the gas I assume that I am not entitled to deduct the entire 48 cents on my income tax return? What would I be able to deduct?
2007-10-13 19:03:43 · 11 answers · asked by Gary E 2 in Business & Finance ➔ Taxes ➔ United States
You can deduct the nonreimbursed portion - in your case .33/mile
2007-10-13 19:07:53 · answer #1 · answered by Devo 4 · 0⤊ 0⤋
You are being paid to drive, so the 15 cents per mile is not a reimbursement, it is part of your wages. Or, that is how it should be treated.
I would treat the gas cards as reimbursement. Then you figure the full 48 cents per mile, plus parking and tolls. From this amount deduct your gas cards. Do this on Form 2106 if you are an employee, or Schedule C if you are issued a 1099. Keep track of all gas purchases made with the gas cards.
After taking expenses you would be working for nothing plus wearing out your vehicle.
2007-10-13 21:27:43 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
Simple.
If you deduct the full amount for mileage, you must also include the gas reimbursement as income. If your vehicle gets twenty miles per gallon, and you pay three dollars for a gallon, then you will get back fifteen cents per mile. The balance of the deduction will compensate you for the depreciation and wear and tear on your car.
2007-10-13 19:11:28 · answer #3 · answered by zealot144 5 · 0⤊ 0⤋
Something the other posters forgot about. Just because these expenses are deductible doesn't mean you can deduct them. If you are an employee you would have to itemize deductions for this to do you any good. You could take actual expenses or the standard mileage rate minus reimbursements, this difference would have to exceed 2% of your adjusted gross income before they start to count. You would then add all your itemized deductions and if they exceed your standard deduction; then its deductible.
If your income is lower than your standard deduction and your exemptions then it is a waste of time. Same is true if your itemized deductions don't exceed the standard deduction.
2007-10-13 21:36:25 · answer #4 · answered by Charlie & Angie G 4 · 0⤊ 0⤋
You would be a fool to take that job. Your car expenses will be more than your wages even including the paltry 15 cents per mile.
2007-10-13 19:08:07 · answer #5 · answered by Trevor S 4 · 0⤊ 0⤋
I'm not sure where you live, but i do know that in most states, you are not allowed to get a job at all below 14, 16 in most places like restaurants and things even 18 for some jobs. So if you are below that age, you may be stuck doing individual things for people but thats about what your limited too unless its a family business.
2016-05-22 08:20:52 · answer #6 · answered by ? 3 · 0⤊ 0⤋
Wear and tear, Oil, Any maintenance that you occur due to miles traveled and I think you might get a stipend for meals you eat while your out of town or away from your home.
2007-10-13 19:08:21 · answer #7 · answered by epat87 3 · 0⤊ 0⤋
33.5 cents times the number of miles minus the gas they paid for.
2007-10-13 19:11:01 · answer #8 · answered by Judy 7 · 0⤊ 0⤋
just keep receipts and paystubs when you go to do your taxes take with and keep all receipts for any food or lodging you have to pay for when your 60 miles a way from home and take those with ya to
2007-10-13 19:08:10 · answer #9 · answered by tina_still_rules 2 · 0⤊ 0⤋
Boots ,phone usage,food if its 2 or more and job related,log books tolls,
2007-10-13 19:08:00 · answer #10 · answered by mark H 2 · 0⤊ 0⤋