Mileage Deduction

Forum|Forum|5 years ago
February 28, 2021
6 replies
28 views

I have a $6407 standard mileage deduction and it didn't change my refund at all. Why not

AnnetteB6

Level 15

The answer as to why it did not affect your return depends on where the mileage deduction was entered.

If it was entered as an employee business expense on Form 2106, then your Federal return will not be affected unless you are in a certain category of employee (an Armed Forces reservist, qualified performing artist, fee-basis state or local government official, or an employee with impairment-related work expenses).

If it was entered as part of Schedule E Rental Income and Expenses and your property generated an overall passive loss, then your Federal return will not be affected.

If it was entered as part of Schedule C Business Income and Expenses, then more information would be needed to explain why your overall refund was not affected.

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BrowladerAuthor

Level 2

It was entered as part of a schedule C as my mileage for instacart

LenaH

Alumni - Expert

There are a few reasons your mileage entered may not be deducted. If one of the belong situations apply, you will have to use the actual method for your automobile expenses.

You will not be able to deduct mileage on your Schedule C if:

You lease your business vehicle.
You made payments on a vehicle, but it is not in your name or your spouse’s name, and you are not considered the owner for tax purposes.
You did not use the standard mileage for 2019. If you choose the actual expenses method in the first year you used your car for work, you'll need to stick with it for every year you use this vehicle for work and keep all your receipts for your records.

Actual expenses include gas, oil, repairs, tires, insurance, registration fees, licenses, and depreciation (or lease payments) that are connected to your work-related mileage.

The amount of actual expenses you can deduct depends on mileage you used your vehicle for work. For example, you drove 12,000 miles last year, but only 6,000 miles were work-related. This means that you can deduct 50% of your actual expenses.

@Browlader

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