You can deduct vehicle expenses for work as an employee business expense.
To deduct employee business expenses, you must have enough itemized deductions (ie. Medical, mortgage interest, property taxes, charitable giving, ect) to exceed your Standard Deduction. If you itemize, your deduction is limited to the extent that it exceeds 2% of your Adjusted Gross Income.
So, you may not gain a tax benefit from this deduction.
To deduct vehicle expenses, you will have the option of claiming the IRS standard mileage rate of 57.5 cents per mile or actual vehicle expenses (ie. gasoline. oil, tires, maintenance) prorated for business miles.
If you claim the standard mileage rate in year one for this vehicle, you will have the option of deducting the standard rate or actual expenses in subsequent years. If you claim actual vehicle expenses in year one, you must choose actual expenses in every subsequent year for that auto.
To report vehicle expense in TurboTax:
- Click My Account (Top right of your screen).
- Select Tools.
- In the pop up window, select Topic Search.
- In the search bar, type in vehicle expenses, employee.
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Highlight it and select GO, and follow the prompts.
As you navigate through the Employee Business Expense Category you will arrive at the Reimbursement For Your Expenses page (towards the end).
Enter your $1.00 reimbursement for deliveries and follow the prompts from there.
