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liiga3
New Member

I had $11,000 federal tax due. Then I added my mileage calculation and it showed that it found $9,000 mileage deduction. My tax due changed to $8,000. Is that correct?

 
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3 Replies

I had $11,000 federal tax due. Then I added my mileage calculation and it showed that it found $9,000 mileage deduction. My tax due changed to $8,000. Is that correct?

It is possible, but that is a lot of business miles.   You know that yiu cannot deduct commute miles from home to the work site or back home but you can deduct miles between business sites.     $9000 at 54.5 cents per mile would be about 16,500 business miles which seems a lot but if you can document that (with mileage logs and locations) then it might be allowed.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
Bees
Level 7

I had $11,000 federal tax due. Then I added my mileage calculation and it showed that it found $9,000 mileage deduction. My tax due changed to $8,000. Is that correct?

You are using self employed (maybe a rideshare driver) so I will assume you are correctly counting your miles. The 9,000 mileage deduction reduced your income by 9k not your tax liability.

 

It would reduce your self employment tax liability as well as reducing your federal tax.

Disclaimer: Not a tax professional. Information gathered from internet links. Anything dated in June 2019 was posted in prior years and is before the 2019 limits and changes.
Anonymous
Not applicable

I had $11,000 federal tax due. Then I added my mileage calculation and it showed that it found $9,000 mileage deduction. My tax due changed to $8,000. Is that correct?

actually taxable income probably went down less than $9K because the QBI deduction would go down  by as much as $1.8K    since we don't know what you do, there really no way to determine whether 16K miles is a lot.  for some it would be high, others about right and for still others extremely low.   

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