topic Auto expense in Deductions & credits

Auto expense

neilbriancohen — Sun, 28 Mar 2021 20:08:48 GMT

My son worked a job in 2020 where he drove, not to the office, but to a job site (different sites throughout the year) every day. He drove about 1100 miles in January and another 11500 miles the rest of the year. In January he was a contract employee (1099). For the remainder of the year he was a full time employee (W2).

Can he deduct all 12600 miles for his driving (he was not re-imbursed). Would it all go on the Schedule C with the 1099? Or only the first 1100 miles? Where would he deduct the remainder, and is it worth entering? His total income was about $50k

Thanks

Re: Auto expense

Bsch4477 — Sun, 28 Mar 2021 20:38:21 GMT

Only business miles driven when he was an independent contractor would qualify as a deduction. Be aware that if he drove from home to a job site and from a job site to home that is commuting and not deductible unless the job was outside of his metropolitan area. Now if he traveled from one job site to another job site that would be deductible mileage.

Re: Auto expense

DaveF1006 — Sun, 28 Mar 2021 20:50:05 GMT

It depends. What Bsch4477 is correct but there is one caveat that should be mentioned. If you live in the states of Alabama, Arkansas, California, Hawaii, Minnesota, New York and Pennsylvania all provide a deduction for unreimbursed employee business expenses on their respective state income tax returns. The same rules apply in the respect that you cannot deduct commuting expenses to or from the office but you can deduct mileage expenses between job sites.

Re: Auto expense

neilbriancohen — Wed, 31 Mar 2021 10:51:52 GMT

Thanks very much...

nbc