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Mileage Tax Deduction

Discussion in 'Gen 2 Prius Main Forum' started by daronspicher, Feb 22, 2006.

  1. daronspicher

    daronspicher Active Member

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    I know you can't just deduct your trip to work from your taxes. But...

    I work for an IT consulting company, salaried, W2, benefits. The office is 42 miles from my house.

    They sell jobs in the surrounding area and then convince me to drive to them and do the work. I may be on a job 2 months then change to another one somewhere else that is 8 months, etc..

    My current project is 65 miles from my house.

    I do not go to the office, then to the project location (if that matters).

    I do not expense or get reimbursed by my company or anyone for any mileage.

    Can I deduct the mileage from the home office to the project site. Which in this case is 65 - 42 = 23 miles each way, 5 days a week, or 230 miles a week.

    If you have any idea on this, I'd love to hear it. I won't take your tax advice as my final answer, but am just trying to decide if I want to spend the money it takes to talk to an accountant about this, or if I can already just know that I can't do this.

    thanks!!
     
    #1 daronspicher, Feb 22, 2006
  2. the fish

    the fish Member

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    Since you are a w-2 employee, your only option may to be deduct the additional mileage you are not getting reimbursed for as unreimbursed employee expenses on form 2106/2106EZ. Problem is that you will only get to deduct the amount of this and other miscellaneous expenses from Schedule A that exceed 2% of your income from line 38.

    Of course, what would benefit you the most would be to get your company to reimburse you at the IRS rate for the additional mileage? My previous and current employers allowed reimbursement.
     
    #2 the fish, Feb 22, 2006
  3. Springtime

    Springtime Member

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    Yes, if your employer does not reimburse you for travel on company time you may be able to claim it if you itemize your deductions and your misc expenses exceed a cetain amount. If you have turbo tax look on the schedule B line 20. I think they have information about what can be claimed on this line. It increases your itemized deductions, it is not a direct credit off of your taxes.

    You must also keep detailed records of mileage.

    If you do not have turbo tax, just search the IRS web site for instructions for Schedule B and look for information about line 20. If you take a standard deduction instead of itemizing you may be out of luck.

    Springtime
     
    #3 Springtime, Feb 22, 2006
  4. Springtime

    Springtime Member

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    Right line, wrong schedule - I should have said schedule A, line 20.

    Springtime
     
    #4 Springtime, Feb 22, 2006
  5. naterprius

    naterprius Senior Member

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    You are NOT allowed to take this deduction. The IRS specifies your primary office as the one you go to most often (I forget the exact metric). Your contract location now becomes your primary office. There is no deduction available.

    If you have a desk, a phone, etc at your employer's office, and spend most of your time there, as well as some time at the client site each week, you would be able to deduct the full mileage from the main office to the client office (and back).

    Of course, then there's that 2% thing...

    Nate
     
    #5 naterprius, Feb 22, 2006
  6. cmympg

    cmympg Who knows? Who cares?

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    I'm late to the "game" so please accept my apologies.

    You can deduct the milage between your home and the project location because it is a temporary assignment. You cannot deduct mileage between home and your normal office because that is considered a communting expense. You must reduce your mileage expense by the amount you are reimbursed by your employer.

    Mileage is claimed on Form 2106 which "flows" to Schedule A line 20.
     
    #6 cmympg, Mar 6, 2006
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