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Level 2

Solved

mileage deduction and auto allowance for 2021

Forum|Forum|4 years ago
January 26, 2022
2 replies
0 views

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

What is the mileage deduction for 2021?

Best answer by MinhT1

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 15

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.

Paul PappasAuthor

Level 2

Thank-you!

MinhT1Answer

Level 15

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

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