You are allowed to deduct your mileage (53.5 cents for 2017) and other job expenses, subtracting what you were reimbursed. Do not subtract your reimbursement if it was included on your W-2 as taxable income. You would treat the gas receipts as reimbursement, but not the $600/Mo. TurboTax completes form 2106, which then carries to Misc itemized deductions on Schedule A. The problem with this is that you only get to deduct that portion of your misc deductions that exceed 2% of your AGI. and then only if your total itemized deductions exceed the standard deduction. (2% rule explained: https://ttlc.intuit.com/questions/2902781-what-is-the-2-rule)
In TurboTax, enter at:
Federal Taxes Tab
Deductions & Credits
-Scroll down to:
-- Job related expenses
This deduction goes away in 2018, under the new tax law.
Is this correct?
My Car Allowance is Taxable
Gas Reimbursement via company gas credit card.
I drive 40,000 miles per year and 30,000 miles is strictly business related.
At $0.58 per mile this equals $17,400.00.
Company paid $3,300 for gas. I deduct that from the $17,400.00 and it equals $14,100.00.
If I make $55,000.00 per year on my W2, then I take 2% ($1,100.00) off of the $14,100.00 which leaves me with a $13,000.00 deduction.
You posted your question to an old thread from prior to 2018. Unfortunately, when TurboTax migrated data from the old user forum Answer Xchange to the new user forum Real Money Talk, old posts got 2019 dates. Confusing, we know.
But if you are a W-2 employee, your job-related expenses are NOT deductible on your 2018 federal tax return under the new tax laws. So you can no longer use mileage or vehicle expenses, home office, etc. on your federal return.