WORK RELATED EXPENSES

[TMSWANT]

The new tax law excludes use of work related mileage as a "misc" business expense. Why does Turbo Tax not let me use work mileage standard deduction for vehicle as common and ordinary work expense deduction?

[ColeenD3]

You need to enter your vehicle in the vehicle section of expenses. You will go through the interview process that aids you in including the expenses on your return.

[TMSWANT]

So, you're saying this isn't something that can be done on your own. It requires speaking with a tax expert that will determine if the deduction is applicable in my situation. If so, then it will be added into my refund calculation. Correct?

[ColeenD3]

Not at all. The program will take the information and will let you know which works to your best advantage. Even so, you still have the choice as to which you prefer to use.

Go to Wages and Income and scroll down to  Self-employment. Enter your income and other expenses and then access the vehicle expense section. Tell all the information about your car and once everything is entered, then you will have a better idea.

[xmasbaby0]

@TMSWANT Are you a W-2 employee or are you an independent contractor?

-W-2 employees cannot deduct job-related expenses on a federal return.  Job-related expenses were eliminated as a federal deduction for W-2 employees by the tax laws that changed for 2018 and beyond.  Your state tax laws might be different in AL, AR, CA, HI, MN, NY or PA.

https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-re...

[TMSWANT]

I thought it eliminated them as misc. work expense but mileage could still used under Section 162(a), I believe. In reading the 26 CFR 601.105 REV. PROC. 2019-46, it talks about using standard mileage deduction for work use of vehicle being allowed, just not as a "misc." expense. It needs to be for "ordinary and necessary" expenses incurred. It states use of automobile would qualify as not s suspended deduction. 

"However, in computing adjusted
gross income, deductions allowed for expenses that are described in § 62(a)(1) or (2)
are not miscellaneous itemized expenses and are therefore not suspended."

[xmasbaby0]

Sorry---no.    W-2 employees cannot deduct mileage or any other job-related expenses on a federal return.  There are a few states --already mentioned above-- that allow you to enter job-related expenses if you are a W-2 employee.

If you are a W-2 employee and your employer is requiring you to use your own car and pay for all the gas to do job-related driving, then it is time for a discussion with the employer.