topic I had $11,000 federal tax due. Then I added my mileage calculation and it showed that it found $9,000 mileage deduction. My tax due changed to $8,000. Is that correct? in Get your taxes done using TurboTax

I had $11,000 federal tax due. Then I added my mileage calculation and it showed that it found $9,000 mileage deduction. My tax due changed to $8,000. Is that correct?

liiga3 — Sat, 28 Sep 2019 03:18:40 GMT

Re: I had $11,000 federal tax due. Then I added my mileage calculation and it showed that it found $9,000 mileage deduction. My tax due changed to $8,000. Is that correct?

macuser_22 — Sat, 28 Sep 2019 03:30:56 GMT

It is possible, but that is a lot of business miles. You know that yiu cannot deduct commute miles from home to the work site or back home but you can deduct miles between business sites. $9000 at 54.5 cents per mile would be about 16,500 business miles which seems a lot but if you can document that (with mileage logs and locations) then it might be allowed.

Re: I had $11,000 federal tax due. Then I added my mileage calculation and it showed that it found $9,000 mileage deduction. My tax due changed to $8,000. Is that correct?

Bees — Sat, 28 Sep 2019 03:37:18 GMT

You are using self employed (maybe a rideshare driver) so I will assume you are correctly counting your miles. The 9,000 mileage deduction reduced your income by 9k not your tax liability.

It would reduce your self employment tax liability as well as reducing your federal tax.

Re: I had $11,000 federal tax due. Then I added my mileage calculation and it showed that it found $9,000 mileage deduction. My tax due changed to $8,000. Is that correct?

Anonymous — Sat, 28 Sep 2019 07:24:28 GMT

actually taxable income probably went down less than $9K because the QBI deduction would go down by as much as $1.8K since we don't know what you do, there really no way to determine whether 16K miles is a lot. for some it would be high, others about right and for still others extremely low.