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mileage deduction

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?

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9 Replies
MaryK4
Expert Alumni

mileage deduction

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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mileage deduction

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
Expert Alumni

mileage deduction

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-b...

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mileage deduction

Is there a way I can legally claim my mileage since I am a w-2 employee in a small business

 

mileage deduction

My work demands that I drive to see my clients. That costs me money. How am I supposed to afford wear and tear on vehicles if not through claimed mileage?

JohnW152
Expert Alumni

mileage deduction

No. 

If you're an employee, there's no deduction available for this.  That's how the law has been for several years.

mileage deduction

So the best way forward is to become a different type of employee such as a contracted employee?  Any other options?

mileage deduction

In other words if I received a 1099 of some form and pay my own taxes, I could claim my business miles driven?

Irene2805
Expert Alumni

mileage deduction

Correct -- If you received a 1099-NEC (nonemployee compensation) you would be considered an independent contractor running your own business.  You would then be able to take either mileage or actual expenses for your automobile, along with any other business expenses.  You would also be responsible for your own payroll taxes (Social Security, Medicare).

 

You could also talk with your employer and negotiate a reimbursement of the mileage or expenses you incur.

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