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Level 2
June 1, 2019
Solved

. Can I claim a mileage deduction to decrease my taxable income for the $400 monthly travel allowance I receive that is included in my total income?

  • June 1, 2019
  • 1 reply
  • 10 views

I use my personal car for the deliveries. The travel allowance received is reported on my W-2. Is there any way I can claim travel expenses to reduce my taxable income?

    Best answer by Hal_Al

    No.  The deduction for job expenses was eliminated, staring in 2018.

    Even in the past, the deduction was only an itemized deduction subject to the 2% of AGI threshold.

    You may want to talk to your employer about switching you to an "accountable plan" for expense reimbursement (it does not get added to your W-2 as taxable income), instead of a fixed allowance. On the other hand, if the allowance is generous, you may be better off paying taxes on it. 

    1 reply

    Hal_Al
    Level 15
    Hal_AlLevel 15Answer
    Level 15
    June 1, 2019

    No.  The deduction for job expenses was eliminated, staring in 2018.

    Even in the past, the deduction was only an itemized deduction subject to the 2% of AGI threshold.

    You may want to talk to your employer about switching you to an "accountable plan" for expense reimbursement (it does not get added to your W-2 as taxable income), instead of a fixed allowance. On the other hand, if the allowance is generous, you may be better off paying taxes on it.