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450418
Returning Member

Mileage deduction

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

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4 Replies

Mileage deduction

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.

**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.**
AnnetteB6
Expert Alumni

Mileage deduction

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 

 

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450418
Returning Member

Mileage deduction

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

450418
Returning Member

Mileage deduction

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

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