In which of these situations (all of which I have been in over the last 2 months) is mileage tax-deductible?
1. Daily commute to the church where I work 25 hours per week but am considered an independent contractor (I use their equipment but pay my own social security).
2. I also am a sole proprietor of a website design and hosting company which I started 18 months ago. When I meet with a client at a coffee shop, for example, is travel to and from the coffee shop deductible?
3. For extra income, I also do websites (paid per site) for a medical management company. Once per week I go to their office to drop off completed site folders, a CD with all sites on it, and pick up new site instructions. I am an independent contractor but also considered "staff." However, all work is at my location (not theirs) using my equipment and on my schedule. Can I claim mileage for this?
4. If I use my personal vehicle to run errands for the church (see question 1) are those errands deductible?
*more*
2007-12-13 02:52:11 · 7 answers · asked by Joel N 2 in Business & Finance ➔ Taxes ➔ United States
5. A couple weeks ago I filled in for a family member who "unofficially" (i.e. no hiring forms) who works for an elderly relative once per week, doing housekeeping and personal care. I was paid for my travel to and from the location at the IRS rate. How do I handle this... and is the payment I received at the IRS mileage rate taxable income?
Thanks!
2007-12-13 02:53:52 · update #1
Based on replies I am curious as to why #2 and #3 (especially #3) do not seem to be deductible?
2007-12-13 04:14:28 · update #2
The mileage you were paid is not taxable, it is a reimbursement. They send it to the IRS, but only to verify they reimbursed you, as they get a tax credit.
You can NOT deduct mileage for commuting to and from work. However, you can claim mileage for errands you run while on the clock.
1, 2, and 3 are "no claim". You can claim mileage after 35 miles, one way as an IC.
#4 is claimable.
2007-12-13 03:02:39 · answer #1 · answered by Landlord 7 · 3⤊ 1⤋
Some of your questions are better answered by a tax accountant. However, whatever is your primary source of income, you can not claim mileage for. Anything else that is considered to be a second job, you can. You can also claim for mileage incurred doing voluntary work. When you meet your clients at a coffee shop, and pay, this could be a deductible business expense. Save the receipts!
2007-12-13 10:58:30 · answer #2 · answered by Beau R 7 · 0⤊ 1⤋
Commuting is not deductible. If you go from job site # 1 to job site #2, the trip from home to the first job site is not deductible, but the second one is deductible.
You can deduct a mileage allowance for driving for a church or charity -- also for mileage to receive medical treatment.
2007-12-13 11:49:26 · answer #3 · answered by Anonymous · 2⤊ 1⤋
1,2,3 are deductibe expenses against your business income. Be sure to maintain a log of mileage for IRS purposes.
4: If you are doing volunteer work the mileage is deductible as part of your itemized deductions on your personal return, assuming you are able to itemize deductions.
5: Claim the check you received as income and deduct the mileage. It will be a push taxwise.
2007-12-13 10:59:27 · answer #4 · answered by jwishz 7 · 0⤊ 2⤋
1 & 4=no 2 & 3=yes
2007-12-13 10:56:10 · answer #5 · answered by birdbayboy 3 · 0⤊ 1⤋
You should get paid .47 per mile. You have to have a grid of mileage to turn in with your tax papers and a form from the companies you contract with and file it on a 1099
2007-12-13 10:56:25 · answer #6 · answered by jstchel 3 · 0⤊ 2⤋
Ok to all and the last is income.
2007-12-13 10:57:45 · answer #7 · answered by mtchndjnmtch 6 · 0⤊ 1⤋