I am a salesman and my employer pays me for mileage at .31 a mile. Can I deduct the miles I have driven since the federal rate is .54
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I am a salesman and my employer pays me for mileage at .31 a mile. Can I deduct the miles I have driven since the federal rate is .54

 
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I am a salesman and my employer pays me for mileage at .31 a mile. Can I deduct the miles I have driven since the federal rate is .54

Yes, if you itemize deductions. After you enter your job-related mileage in TurboTax, you'll be prompted to enter any reimbursements that were not included in your wages. TurboTax will calculate the difference between what your company gave you and the IRS standard business mileage rate for 2016 ($0.54 per mile).


To enter your job-related mileage in TurboTax (for income reported on a W-2):

  • Open (continue) your return in TurboTax Online. (If your return isn't open, you'll need to sign in and click Take me to my return.)
  • Click My Account (top right of your screen).
  • Click Tools.
  • Click Topic Search.
  • In the search bar, type 2106.
  • In the results box, highlight 2106, then click GO.
  • Follow the onscreen instructions to enter your job-related expenses. You'll get to a screen that asks Any Vehicle Expenses or Sales? Click Yes.
  • You'll be asked numerous questions about business use of your vehicle. Answer the questions and continue going through the job-related expenses interview.
  • Near the end of the interview, you'll be asked questions about reimbursements. (Click the screenshots below to enlarge them for reference.) Respond accordingly and continue to the end of this section.
  • When you are finished entering job-related expenses for this job, TurboTax will display the Job-Related Expenses Summary.

Note: If using the TurboTax CD/Download software, you'll use the Find function (instead of "My Account") to search for the topic.


As previously mentioned, you'll only be able to claim job-related expenses if you itemize deductions (Schedule A). These expenses aren't fully deductible as they are subject to the 2% rule, as described in the FAQ below. 

What is the 2% Rule? https://ttlc.intuit.com/replies/4800344

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