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wondermom
New Member

I use my vehicle for outside sales travel. My company provides a credit card to pay for gas and a monthly car allowance. Can I write off the difference if I have data doc

 
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Accepted Solutions
DDollar
Expert Alumni

I use my vehicle for outside sales travel. My company provides a credit card to pay for gas and a monthly car allowance. Can I write off the difference if I have data doc

You could claim a deduction for the difference as an unreimbursed business expense, but you would have to itemize your deductions in order to take the deduction.  Additionally, the deduction is allowed only for the amount that is more than 2% of your Adjusted Gross Income (AGI). 

You would claim the mileage deduction for the business use of your vehicle and then enter the amount of reimbursement from your employer later in the interview for Job-Related Expenses Summary.

It is very difficult to qualify for this deduction. That's because the expense limit is so high. In order to qualify, your job-related expenses must be more than 2% of your AGI (adjusted gross income).

Example: If your AGI is $40,000, your expenses would have to be more than $800 ($40,000 x 2%). Even then, you could only deduct the amount over $800. So, if your job-related expenses were $1,000 you could only deduct $200 ($1,000 - $800).


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3 Replies
DDollar
Expert Alumni

I use my vehicle for outside sales travel. My company provides a credit card to pay for gas and a monthly car allowance. Can I write off the difference if I have data doc

You could claim a deduction for the difference as an unreimbursed business expense, but you would have to itemize your deductions in order to take the deduction.  Additionally, the deduction is allowed only for the amount that is more than 2% of your Adjusted Gross Income (AGI). 

You would claim the mileage deduction for the business use of your vehicle and then enter the amount of reimbursement from your employer later in the interview for Job-Related Expenses Summary.

It is very difficult to qualify for this deduction. That's because the expense limit is so high. In order to qualify, your job-related expenses must be more than 2% of your AGI (adjusted gross income).

Example: If your AGI is $40,000, your expenses would have to be more than $800 ($40,000 x 2%). Even then, you could only deduct the amount over $800. So, if your job-related expenses were $1,000 you could only deduct $200 ($1,000 - $800).


wondermom
New Member

I use my vehicle for outside sales travel. My company provides a credit card to pay for gas and a monthly car allowance. Can I write off the difference if I have data doc

Would the turbo tax program calculate that?
DDollar
Expert Alumni

I use my vehicle for outside sales travel. My company provides a credit card to pay for gas and a monthly car allowance. Can I write off the difference if I have data doc

If you enter your mileage the program calculates the expense, and the then you enter your reimbursement, the program will calculate the difference and give you the deduction for the amount that's over the 2% threshold.

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