Before you upgrade, you should understand that your mileage is an itemized deduction. If you will not have enough itemized deductions to exceed your standard deduction, then upgrading may not be worthwhile for you.
Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund. The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting thresholds (for example: only the amount of your medical deductions that are over 10% of your AGI or over 7.5% if you are 65 or older are “counted”) or are calculated by a percentage of what you entered. The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you. Here are the Standard Deductions for 2016
Your standard deduction lowers your taxable income. It is not a refund
2016 Standard Deductions
Single $6300 (65 or older + $1550)
Married Filing Separately $6300 (65 or older + $1250)
Married Filing Jointly $12,600 (65 or older + $1250@)
Head of Household $9300 (65 or older + $1550)
There is a free version of TurboTax available if you qualify:
You qualify if your income was $33,000 or less, or $64,000 or less if active duty military, or if you qualify for Earned Income Credit
Try the Freedom Edition:
You can deduct all ordinary and necessary expenses you pay to earn your income.
You can deduct 54 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.