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danwhitcomb96
New Member

How does claiming miles for work affect my return?

I work as a delivery driver and get paid 27 cents per mile, and the federal mileage rate is 54 cents per mile. After claiming my miles why does this not affect my return?
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Accepted Solutions
DanielV01
Expert Alumni

How does claiming miles for work affect my return?

It depends.  If you are an employee, claiming your mileage will only have an impact if your deductions allow you to itemize.  To determine this, you need to claim the expenses on Form 2106.  For your mileage, you can claim the difference of the 54 cent/mile Federal allowance to deduct and the 0.27/mile you received.  You claim it by first claiming the total number of miles and then inputting the amount of reimbursement you received for your driving.

However, as an employee, your deductions are subtracted by 2% of your AGI total, and then this amount would be added to your itemized deductions.  If your itemized deductions are more than your standard deduction, you will see a larger refund.  If not, then you will claim the standard deduction.

This can also depend on the state return as well because states vary greatly in how they treat itemized deductions.  But because of this, you may wish to do the exercise because even if the deductions don't help your Federal return, they may help your state return.

If you are self-employed, the same basic rules apply.  However, you would absolutely see a difference because self-employed individuals claim a direct expense against self-employment income.  The self-employment income would be lowered, as well as self-employment as well as regular Federal and State income taxes.

Since this is the case, you sound like an employee.  Here is an FAQ that can assist to ensure you are entering the expenses in the correct place in TurboTax:  https://ttlc.intuit.com/replies/4800418

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2 Replies
SweetieJean
Level 15

How does claiming miles for work affect my return?

Are you a  W-employee?
DanielV01
Expert Alumni

How does claiming miles for work affect my return?

It depends.  If you are an employee, claiming your mileage will only have an impact if your deductions allow you to itemize.  To determine this, you need to claim the expenses on Form 2106.  For your mileage, you can claim the difference of the 54 cent/mile Federal allowance to deduct and the 0.27/mile you received.  You claim it by first claiming the total number of miles and then inputting the amount of reimbursement you received for your driving.

However, as an employee, your deductions are subtracted by 2% of your AGI total, and then this amount would be added to your itemized deductions.  If your itemized deductions are more than your standard deduction, you will see a larger refund.  If not, then you will claim the standard deduction.

This can also depend on the state return as well because states vary greatly in how they treat itemized deductions.  But because of this, you may wish to do the exercise because even if the deductions don't help your Federal return, they may help your state return.

If you are self-employed, the same basic rules apply.  However, you would absolutely see a difference because self-employed individuals claim a direct expense against self-employment income.  The self-employment income would be lowered, as well as self-employment as well as regular Federal and State income taxes.

Since this is the case, you sound like an employee.  Here is an FAQ that can assist to ensure you are entering the expenses in the correct place in TurboTax:  https://ttlc.intuit.com/replies/4800418

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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