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trevorlang94
New Member

I had over $2000 in mileage deductions according to Turbotax, which is more than I owe, but I still owe $824. Why would this be?

Without the mileage the amount owed was a bit over $1000, but with the $2000 in mileage credits applied it only went down to $824. Is something being applied incorrectly here?
2 Replies
AnnetteB6
Expert Alumni

I had over $2000 in mileage deductions according to Turbotax, which is more than I owe, but I still owe $824. Why would this be?

No, it sounds reasonable since mileage is not claimed as a tax credit.  It is a business deduction.

 

If you are claiming mileage, then you must be filing Schedule C for self-employment.  That means that you are subject to self-employment tax and income tax based on the overall income of your business.  

 

The mileage deduction does not reduce self-employment tax or income tax dollar for dollar.  It reduces your business income, which then lowers the self-employment tax and your income tax.  

 

 

@trevorlang94

 

 

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trevorlang94
New Member

I had over $2000 in mileage deductions according to Turbotax, which is more than I owe, but I still owe $824. Why would this be?

Makes sense, thank you very much for the reply!

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