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Returning Member
posted Apr 13, 2024 8:35:12 AM

Mileage deduction

When I enter my miles for the year, it increases my tax due, why?  It should decrease.

0 4 826
4 Replies
Level 15
Apr 13, 2024 8:39:23 AM

Are you entering mileage on a Schedule C for business expenses?   As you enter your expenses, it is affecting your  income and might be affecting other credits like earned income credit or additional child tax credit.

Expert Alumni
Apr 13, 2024 8:40:47 AM

If you are entering mileage for your Schedule C business expense, then by entering the expense, you are reducing the Schedule C income.  This, in turn, could be reducing your Qualified Business Income (QBI) deduction.  Lowering the QBI deduction would increase your balance due.

 

@450418 

 

Returning Member
Apr 13, 2024 8:44:01 AM

I don't claim either of those, I am entering this under business and income expenses.  

Returning Member
Apr 13, 2024 8:46:08 AM

It just seems like an awful lot, the deduction is only about 7000 and the tax due increase by about 2500