I have a company car. Each month I have to report personal and business mileage. Our closing month just occurred and the fleet company did not report the last month for me. So I am to be billed 12% personal use of my company car lease for the year for the 1 month of non reporting. This amounts to about $900 dollars. I did not use this for personal use at all this year. My company is telling me that I need to correct this during my taxes. I am unsure of how to do this. Is there anyway to recapture this complete amount? I am afraid that because I typically do a standard deduction this will be lost.
Yes I am. I also take the standard deduction typically and I am worried I will not be able to actually recoup the deduction this way.
@schneiderapril14 Since you are an employee who receives a W-2, your employee business expenses are not entered on a federal tax return due to the tax code changes in effect for tax year 2018 thru 2025.
That is what I thought as well but HR is telling me that I need to ask my tax professional how to correct it when doing my taxes but seeing as I do mine I wasn't sure if this was even something that could be corrected.
W-2 employees cannot deduct job-related expenses on a federal return. Job-related expenses were eliminated as a federal deduction for W-2 employees by the tax laws that changed for 2018 and beyond. Your state tax laws might be different in AL, AR, CA, HI, MN, NY or PA.
If you live in a state that lets you deduct job-related expenses, the information will flow from your federal return to the state return, so enter it in Federal>Deductions and Credits>Employment Expenses>Job-Related Expenses