Mileage Reimbursement - Subcontracting Company?

Question

I work for a subcontracting company and I was told that when I file my taxes I can get mileage reimbursement to and from work as well as from driving to locations. I was looking things up online, but can't seem to find exactly if I can be reimbursed for to and from work. They said since they are a subcontracting company, I can. I used Form W9 so I do not have any taxes withheld from my check, either, since I work part time.

Answer 1

That doesn't sound legitimate. Who is to reimburse you, the company you work for? Or do you mean deduct the mileage on your taxes? For deduction on your taxes you may be able to deduct mileage used for business purposes only, not to and from work.

Answer 2

Form W-9 is used by contract personnel so that he payer can prepare Form 1099 at the end of the year. You are a contractor if you provide your own tools and workplace as well as schedule your onw jobs. If you are required to be on site during specified hours and take specific trask direction form someone else then you are an employee, pure and simple, and taxes MUST be withheld from your wages.

As far as using your own vehicle is concerned, commuting miles are NEVER deducible. Any use after you arrive at the jobsite and until you depart for home IS deductible and you may comple Form 2106 and attach it to Schedule A of your Form 1040 tax return if you have enough miles to make it worth claiming. If you are reimbursed for your use, you do not claim a deduction UNLESS the reimbursements were included in your gross income. Most employers cut separate reimbursement checks so that won't show up on your W-2 and you can therefore deduct your expenses as noted above.

Answer 3

It appears that you are not an employee and are independent contractor. You will get 1099 instead of W2.

1. W2 -- you are an employee. From your income social security and medicare taxes are withheld at 7.65%. You normally can't claim expenses associated with the job unless you itemize your deductions. Also your business related (job related) expenses are subject to 2% AGI limit.

2. 1099 -- you are independent contractor (self-employed). If you have expenses associated with this job, you file Schedule C (Form 1040) on which you record your income and expenses. On your income, you will pay social security and medicare taxes at 15.3%, for this you will use schedule SE (Form 1040)
With 1099, the employer does not have to pay their part of employment taxes of 7.65% and some other taxes.

3. On schedule C you can claim mileage deduction, but mileage from home to your first place of work and from your last place of work to home is not deductible.

Answer 4

You can't deduct the mileage from home to and from your primary place of employment. Driving from your primary place of employment to other worksites is deductible.

Deducting it isn't the same as being reimbursed. The amount would be subtracted from your income before figuring taxes, but you'd only actually save a portion of the expense in taxes - if you're in a 15% bracket you'd save 15% of the expenses.