topic W-2 Employee. Receive $600/mo car allowance. Also company gas card. Car allowance is taxed, card isn't. Is there any additional deduction I can take for mileage? in Deductions & credits

W-2 Employee. Receive $600/mo car allowance. Also company gas card. Car allowance is taxed, card isn't. Is there any additional deduction I can take for mileage?

cbennett51 — Thu, 06 Jun 2019 13:57:47 GMT

I don't get taxed on the amount of gas I spend for my vehicle. It is reported on my pay stub but later deducted and not taxed. Also I purchased a truck specifically for work because it was suggest this would be the best vehicle to use. Can I take any deductions on it?

You are allowed to deduct your mileage (53.5 cents for 20...

Hal_Al — Thu, 06 Jun 2019 13:57:48 GMT

You are allowed to deduct your mileage (53.5 cents for 2017) and other job expenses, subtracting what you were reimbursed. Do not subtract your reimbursement if it was included on your W-2 as taxable income. You would treat the gas receipts as reimbursement, but not the $600/Mo. TurboTax completes form 2106, which then carries to Misc itemized deductions on Schedule A. The problem with this is that you only get to deduct that portion of your misc deductions that exceed 2% of your AGI. and then only if your total itemized deductions exceed the standard deduction. (2% rule explained: https://ttlc.intuit.com/questions/2902781-what-is-the-2-rule)

In TurboTax, enter at:

Federal Taxes Tab

Deductions & Credits

-Scroll down to:

-Employment Expenses
-- Job related expenses

This deduction goes away in 2018, under the new tax law.

Thank you...that closely helps. I don't keep gas records...

cbennett51 — Thu, 06 Jun 2019 13:57:50 GMT

Thank you...that closely helps. I don't keep gas records, I have a company provided card that I just pay for gas with. The only way it's tracked is they keep records of it and it shows on my W-2 as non taxable. Does that change the situation at all?

The answer doesn't change. It sounds like you just get th...

Hal_Al — Thu, 06 Jun 2019 13:57:52 GMT

The answer doesn't change. It sounds like you just get the gas amount off your W-2. So your bookkeeping is easy.

Re: The answer doesn't change. It sounds like you just get th...

Rontom — Mon, 19 Aug 2019 14:45:12 GMT

Is this correct?

Example:

My Car Allowance is Taxable

Gas Reimbursement via company gas credit card.

I drive 40,000 miles per year and 30,000 miles is strictly business related.

At $0.58 per mile this equals $17,400.00.

Company paid $3,300 for gas. I deduct that from the $17,400.00 and it equals $14,100.00.

If I make $55,000.00 per year on my W2, then I take 2% ($1,100.00) off of the $14,100.00 which leaves me with a $13,000.00 deduction.

Re: The answer doesn't change. It sounds like you just get th...

xmasbaby0 — Mon, 19 Aug 2019 15:49:13 GMT

@Rontom

You posted your question to an old thread from prior to 2018. Unfortunately, when TurboTax migrated data from the old user forum Answer Xchange to the new user forum Real Money Talk, old posts got 2019 dates. Confusing, we know.

But if you are a W-2 employee, your job-related expenses are NOT deductible on your 2018 federal tax return under the new tax laws. So you can no longer use mileage or vehicle expenses, home office, etc. on your federal return.

https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-reform