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Level 4

Mileage deduction with stipend

My wife is a float Physical Therapist and works between 12 different locations anywhere from in town to an hour away. She is at a different location every day. She also gets a travel stipend each year for being a float PT. So is correct that she add up all her miles and deduct any amount over the travel stipend?


Let's say the stipend is 5k a year, and after multiplying the rate * miles, that ends up being 6k. Can she take a 1k deduction?



1 Comment
Catalyst V

Mileage deduction with stipend

You are correct. However, if the stipend is included in box 1 of her W-2, then that stipend is taxable income that is included as a part of her compensation. If that's the case, then she can claim it all. Do understand however that until her work related expenses exceed 2% of your AGI *and* exceed your standard deduction, itemized deductions will make no difference on your tax liability.

Now if she is self-employed and claims all business income/expenses on SCH C as a part of your personal 1040 joint return, then it will make a difference on the overall tax liability. How much of a difference will depend on what tax bracket you end up in at the end of the year.