Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Jan 26, 2022 11:33:20 AM

mileage deduction and auto allowance for 2021

I receive an auto allowance but my mileage is still pretty high.

What is the mileage deduction for 2021?

 

0 3 1064
1 Best answer
Expert Alumni
Jan 26, 2022 11:40:21 AM

The mileage rate is 56 cents a mile for 2021.

 

However, if you are an employee, you cannot deduct mileage even if they were for your job.

 

Up to tax year 2017, job-related expenses were deductible as an itemized deduction subject to the 2% of AGI floor.

Under the Tax Cuts and Jobs Act, the itemized deductions for job-related expenses subject to the 2% of AGI floor are suspended for expenses incurred after December 31, 2017 through 2025.

 

Therefore, your mileage as an employee is no longer deductible for tax year 2021

3 Replies
Level 15
Jan 26, 2022 11:36:58 AM

For tax year 2021 the federal mileage rate is $0.56 per mile for business use of the vehicle

 

If you are employee who receives a W-2 no employee business expenses are deductible on a federal tax return due to the tax code changes in effect for tax years 2018 thru 2025.

Expert Alumni
Jan 26, 2022 11:40:21 AM

The mileage rate is 56 cents a mile for 2021.

 

However, if you are an employee, you cannot deduct mileage even if they were for your job.

 

Up to tax year 2017, job-related expenses were deductible as an itemized deduction subject to the 2% of AGI floor.

Under the Tax Cuts and Jobs Act, the itemized deductions for job-related expenses subject to the 2% of AGI floor are suspended for expenses incurred after December 31, 2017 through 2025.

 

Therefore, your mileage as an employee is no longer deductible for tax year 2021

Level 2
Jan 26, 2022 11:40:22 AM

Thank-you!