Can I write off mileage on my car if I receive a monthly car allowance?

You can write off auto expenses but you also have to reduce them by any reimbursement not already included as taxable income on your W-2.  You can't deduct both a mileage rate and repairs.

You can claim deductible business auto/truck expenses in one of two ways.

• IRS Mileage Rate:  You can claim business miles times the IRS mileage rate. IRS mileage rates for business activities are $0.56/mile in 2014, $.575/mile in 2015, $0.54/mile in 2016 and $0.535 in 2017. You can add parking and tolls to the mileage rate.
• Actual Cost: You can claim your actual costs including depreciation times the percentage that you use your car for business. Actual costs would include gas, oil, insurance, repairs, etc. Payments on a note would not be deductible. The cost of the vehicle would be deducted through depreciation instead (or lease payments if you lease it.)

Where to Deduct:

·         If you are an employee, they are a miscellaneous itemized deduction. Miscellaneous itemized deductions are only available if you qualify to itemize and only to the extent that they exceed 2% of your Adjusted Gross Income. Turbotax explains the 2% limit here.

• If you are self-employed, these expenses would be business expenses on Schedule C.