TAX QUESTIONS If my company pays for mileage driven can I still write off the mileage on my taxes?
TAX QUESTIONS If my company pays for mileage driven can I still write off the mileage on my taxes?
Im a sales person who drives many miles. My company pays the current mileage rate, can i still write this off on my taxes? What are the benefits of using a long form opposed to a 1040EZ. Can you still write off a space in your home used for business? THANK YOU!
Answers:
Crazeddoglady: If you are being reimbursed for mileage then no, you may not write it off. In order to take any eligible deductions (space in your house used for business) you cannot use the 1040EZ - you will need to use the full blown 1040. You have to read the instructions carefully to see how much you can write off for each activity - part of your phone bill might be eligible, part of your power bill, heating, etc. too.
2009-01-12 02:52:37
2009-01-12 02:52:37
Chosen Answer
bostonianinmo: Depends. Most companies that reimburse for expenses do so using an Accountable Plan. Under an Accountable Plan, you submit receipts and logs for reimbursement and are reimbursed for your costs, including mileage at the Federal reimbursement rate. With an Accountable Plan, your reimbursements are not reported on your W-2. Since you were reimbursed for your actual costs, you cannot take any further deductions on your tax return. If your company does NOT operate an Accountable Plan, any reimbursements would be included in box 1 of your W-2. In this case you may file From 2106 to deduct either the actual cost of using your vehicle, apportioned between business and personal use OR take the Standard Mileage Rate. The total from Form 2106 then flows to Schedule A as a miscellaneous itemized deduction, subject to a 2% AGI floor. Itemizing is only worthwhile if your deductions exceed the Standard Deduction for your filing status, for example $5,450 for Single or $10,900 for Married Filing Jointly.
2009-01-12 03:10:04
bostonianinmo: Depends. Most companies that reimburse for expenses do so using an Accountable Plan. Under an Accountable Plan, you submit receipts and logs for reimbursement and are reimbursed for your costs, including mileage at the Federal reimbursement rate. With an Accountable Plan, your reimbursements are not reported on your W-2. Since you were reimbursed for your actual costs, you cannot take any further deductions on your tax return. If your company does NOT operate an Accountable Plan, any reimbursements would be included in box 1 of your W-2. In this case you may file From 2106 to deduct either the actual cost of using your vehicle, apportioned between business and personal use OR take the Standard Mileage Rate. The total from Form 2106 then flows to Schedule A as a miscellaneous itemized deduction, subject to a 2% AGI floor. Itemizing is only worthwhile if your deductions exceed the Standard Deduction for your filing status, for example $5,450 for Single or $10,900 for Married Filing Jointly.
2009-01-12 03:10:04
Jss: You can still claim the difference between the standard mileage rate and the rate given by your employer.
This is itemized deduction. You can deduct the expenses that is more than 2% of your adjusted gross income (Form 1040, line 38). Read: http://taxipay.blogspot.com/2008/05/itemized-deductions.html
2009-01-12 06:03:19
2009-01-12 06:03:19
Judy1: NO, you aren't paying it, you are being reimbursed.
If you have itemized deductions higher than your standard deduction, you pay less tax using a 1040 and itemizing that if you use 1040EZ. There are some other things, like a number of the credits, that you can't take using a 1040EZ. Otherwise, it's the same.
2009-01-12 07:38:33
2009-01-12 07:38:33
jonne h: No you can not, but if you have maintenance or repairs or regular service you can write that off.
2009-01-12 10:05:50
2009-01-12 10:05:50