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Level 2
February 22, 2021
Question

mileage deduction

  • February 22, 2021
  • 9 replies
  • 33 views

I ran 30000 business miles last year, none of it reimbursed. At $.575 per mile what should it reduce my taxes? Is it a direct deduction of $17250?

    9 replies

    MaryK4
    Alumni - Intuit
    February 22, 2021

    No, the deduction will be subtracted from your gross business income to determine your net business income.  The tax is then applied to the adjusted gross income soo it is not a direct amount. 

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    Level 2
    February 23, 2021

    If I am a w-2 employee but have the mileage expenses, do I need to change how my employment is considered. My earnings are from the business that I don't own but am paid salary with unreimbursed mileage.

    CatinaT1
    Alumni - Intuit
    February 23, 2021

    Sorry if you are a W2 employee job expenses are no longer deductible.  See Deductions that have been suspended for 2018 - 2025.

     

    https://ttlc.intuit.com/community/tax-reform/help/which-federal-tax-deductions-have-been-suspended-by-tax-reform/00/25565

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