I have a $27+k deduction relating to the car used for my business, why does that deduction not give me a greater refund?

I have been deducting mileage expense for my sales job for several years.  i got divorced and started filing single head of house hold this year and the prior 2 years.  i noticed as i progressed through the process of completing a return that as i input the info for mortgage interest and state taxes, my in refund would increase after each entry.  prior to me filing as single head of household, when i entered the mileage expense, i got a significant bump in the refund...not any more.  is this because i'm not filing as married with dependents???

Anita01
New Member

Get your taxes done using TurboTax

is this a W-2 job

Get your taxes done using TurboTax

yes

Get your taxes done using TurboTax

No reimbursement?

Get your taxes done using TurboTax

none

Get your taxes done using TurboTax

You drive approx 50,000 miles a year on business?

Since you are a W-2 employee, only the amount that is in excess of 2% of AGI counts as an itemized deduction.

Once your taxable income is down to zero, though, you gain no further benefit.

Conversely, itemized deductions phaseout at high income levels. or, maybe you are subject to AMT.  The triggers for those are different for HOH than for MFJ. 

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Also, under the new tax law, unreimbursed employee business expenses go away starting with 2018 tax returns filed in 2019. So talk to your employer.

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