Delivery job. Paid 43 cents a mile + minwage use my car. Can i deduct the dif between what i was paid and allowed deduction ?
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Hope that makes sense.
So i deliver at night part time. I get 43 cents a mile paid by employer plus min wage and i use my own car. I was wondering … they didnt tax my milage in my check. Am i allowed to deduct the difference between what they paid me 43 cents and what this years federal deduction rate is of 53.5 cents a mile ?
havent looked this up nor asked anybody yet. it just popped in my head as a way to save about 100$
Thanks.
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What are you driving and how many miles a day?
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was driving a crown vic (really it was a gran marquis) FWF to the core !! Also did some miles in a saturn ion too.
But im no longer employed there.
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If you drove a lot, like 100-200 miles a day, you should have bought something that gets over 50 MPG. Clear an extra $50 a day or more.
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IRS Publication 17 explains this. Page 191 gives an example where an employee drives 10,000 miles and the employer reimburses $4,000. She can complete Form 2106 to itemize the difference of $1350.
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I’m a CPA (though taxes aren’t my specialty but I know enough). Yes you can deduct the difference as unreimbursed business expenses. However, you can claim it only if you itemize and you can only deduct the amount that exceeds 2% of your income. So if you made $25,000, you could deduct the difference in the mileage rate minus $500. However in 2018, this deduction goes away as part of the new income tax law.
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I have plenty of dedections… started an expensive to start business this year.
Thanks for all the answers
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Are you an employee or contractor? If an employee, your deduction for unreimbused expenses is (i) contingent on your itemizing (vs. standard deduction) and (ii) only for the amount in excess of 2% of AGI. If you are a contractor, these limits /conditions do not apply, deduct on Schedule C.