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Buschkt
New Member

business Mileage deduction

When I add a mileage deduction my tax refund goes down...it should go up...

 

I am thinking of just leaving mileage off at this point...any idea why?

 

Thanks

 

Kendall

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4 Replies
KrisD15
Expert Alumni

business Mileage deduction

You must take either

Standard Mileage or Actual Cost

Were you switching from one to the other? 

Are you taking any special depreciation on the vehicle? 

 

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Buschkt
New Member

business Mileage deduction

I am using standard mileage deduction....no depreciation.  If I lower the mileage my refund goes up and vice versa..

 

Thanks

DaveF1006
Expert Alumni

business Mileage deduction

The only thing i can think of is if you are claiming the earned income credit or other credits like the child tax credit.  For an example, if you reduce your earned income below a certain amount, this may decrease your credit. if you reduce your income below zero, you may not receive any credit(s). I don't know your particular circumstance but these things i mention are likely culprits.

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Buschkt
New Member

business Mileage deduction

ok...that makes sense...my income is low.  That may also explain why adding business expenses also decreased my refund...

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