You'll need to sign in or create an account to connect with an expert.
Your employer is correct. W-2 employees can no longer deduct mileage, and must pay taxes on any reimbursement.
There was a time when an employee could write off cost of mileage as a work expense, but that is no longer available.
If your employer is paying you as a W-2 employee, they would need to supply you with a vehicle, or pay you as a contract worker on a 1099 (as if you are self-employed) or include payment in your wages.
Since they are including the payment as part of your wages, you can't separate the expense out and you'll pay tax on it.
Because your employer is doing it that way, there is nothing you can do.
However, you might consider pointing out to your employer that if they start reimbursing mileage under an "Accountable Plan", it will save taxes for BOTH you AND your employer.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
heathercollins05
New Member
ronq671
New Member
asdfg1234
Level 3
jlfarley13
New Member
RMD20201
Level 3