turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

tygeb
Returning Member

mileage deduction and auto allowance for w2

 
SInce mileage is no longer deductible for a w2 employee, do i still have to track mileage if i am getting a car allowance?
 
Per this discussion:  
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

9 Replies

mileage deduction and auto allowance for w2

If you are a W-2 employee you do not need to track mileage for your fedetal return. But you say your employer gives you a mileage allowance. Ask your employer if they still need you to keep a record for the employer. 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
tygeb
Returning Member

mileage deduction and auto allowance for w2

Sorry, i'm probably confused.  I mentioned they are provided an car allowance, not a mileage allowance.  are they they same?

rjs
Level 15
Level 15

mileage deduction and auto allowance for w2

There is no reason to track your mileage for federal tax purposes, since you cannot claim a deduction for the mileage. The car allowance is just additional income on your tax return. You don't have to explain it.

 

There are two reasons that you might still have to track your mileage.

 

1. Your employer might require you to report your mileage to the employer in order to get the car allowance.

 

2. Some states still allow a deduction for job-related expenses, even though the federal tax law doesn't allow it. If you are able to itemize deductions on your state tax return, and your state allows the deduction for job-related expenses, you would need to track your mileage to calculate and support the deduction on your state return. This only applies if the car allowance is reported as taxable income. If the car allowance is paid through an "accountable plan" and is not included in your taxable income, then you cannot claim a deduction for mileage.

 

If neither of these two situations applies, there is no need for you to track your mileage.

rjs
Level 15
Level 15

mileage deduction and auto allowance for w2


@tygeb wrote:

Sorry, i'm probably confused.  I mentioned they are provided an car allowance, not a mileage allowance.  are they they same?


People are not always precise in their terminology here, so we don't make such fine distinctions. "Car allowance" and "mileage allowance" might or might not mean the same thing. The question is whether the allowance that you get from your employer, whatever you call it, depends on the number of miles that you drive for work. If it does, then obviously you have to keep track of your mileage and report it to your employer. If the allowance does not depend on the mileage, then there is no need to track your mileage. However, the state tax consideration that I discussed in my earlier reply above might still apply.

tygeb
Returning Member

mileage deduction and auto allowance for w2

Interesting.  Thank you for such clarity.  It raised more questions. 

 

On my expense report, i have 2 questions for Auto Expense;
1)  I certify that i have had auto expenses that equal or exceed the auto expense.  or 

2)  I did not equal or exceed the auto expense allowance and wish to be paid the actual expense.

 

My whole discussion, so you know the background, is based upon my employer choosing to forgo a company car i was provided free usage of, and to compensate me $600 / month as auto allowance.    I know this will be counted for income and that is fine.  The question is, how is that $600 accounted for with the 2 questions above.  Is it based on miles i drive or what is it covering?  And if it's miles, do i figure the miles X $.55 to get my total expense?  or  reverse figure $600 / $.55 = 1090 mile per month is what is covered mileage for work.  Then is over the 1090 mile deductible in Oregon?

 

Thanks again.  I didn't know how to get all this out in a question. 

rjs
Level 15
Level 15

mileage deduction and auto allowance for w2

That's not a tax question. You're asking how to fill out your employer's form. You have to ask your employer. Since the car allowance is being reported as taxable income in any case, how you fill out the employer's expense report form has no effect on your taxes.

 

As far as taxes are concerned, it makes no difference why you are getting the car allowance. It's just additional wages on your tax return.

tygeb
Returning Member

mileage deduction and auto allowance for w2

No don't need help on filling out the form, i have been filling it out for years, but the auto deduction part has changed with  the car change explained earlier.   So if it is based on mileage then it becomes a tax question right?   If it is a mileage question, then what would the answer be from the other questions i asked regarding the 1090 miles, and if Oregon is one of those states that allows still the deduction?  thanks again.

rjs
Level 15
Level 15

mileage deduction and auto allowance for w2

Job-related expenses are not deductible on the Oregon tax return. (Oregon follows the new federal tax law on this.) You cannot claim any deduction for mileage or car expenses on your Oregon tax return. It makes no difference whether your employer reimburses all, some, or none of the expenses. So there is no need to track your mileage for either your federal or Oregon tax return.

tygeb
Returning Member

mileage deduction and auto allowance for w2

thank you.  

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies