I work as a contract worker. I recenly stated driving and meeting with clients that my boss used to meet with. Should he have to pay me mileage or can I claim the Mileage on my tax return?
Will I beable to claim mileage on my tax return.?
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8 Responses to Will I beable to claim mileage on my tax return.?
call the irs and ask them its a 1-800#
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You cannot both claim it so I would think it’s to your advantage to claim it yourself. There may be other deductible expenses that you can claim also providing you are getting a 1099 instead of a W2 for your compensation. One deductible expense regardless is a qualified tax accountant so I would suggest you see one at tax time. Keep all of your receipts and then you can also deduct his or her fee as well. Once you know what you can and cannot claim, next year’s taxes will be even easier to figure on your own. Don’t settle for a quickie tax preparer… go for the best!!!
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As long as it’s work related you can, lot’s of people do!
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You can claim the mileage when you pay, if employer pays they claim the deduction.
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who claims the mileage depends on who pays it. The question as to your employer paying or you, that is something that should be agreed upon by the two of you. It is to your advantage if you can get him to reimburse you the 44.5 cents a mile authorized for business miles. Since that is a reimbursement your do not need to claim that amount as income. If he were to pay you more than the 44.5 cents you would claim that as income unless you could show actual expenses for the excess. He can claim what ever he pays you on his tax return.
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He doent have to pay you, but he should reimburse you and then deduct it himself.
If he doesn;t it you CAN claim it on your taxes. There is a line on the 1040 schedules for mileage not reimbursed. Legally, you can only claim mileage after after one stop. You cannot claim it to and from your first location each day, unless it is not your office. your boss should sign off on your mileage log to avoid an audit
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If you claim the mileage yourself, you need to keep a log of every mile you put on the car. It should have detailed info on the business usage, such as beginning miles, ending miles, where you went, who you saw, etc.
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He can pay it, but it is his choice. If your employer does not pay it, you may be able to deduct the mileage on your return. You would do this by using a form 2106 (Employee Business Expenses). The ‘bottom line’ of this form is then carried to the Schedule A (Itemized Deductions). Then, if you have enough deductions to exceed the standard deduction for your filing status, you’re in.
Sounds complex, but it really isn’t. Just be aware that there can be depreciation on the vehicle (more deduction), and that you can claim actual or standard expenses. There is also a seperate place for you to claim parking, fees, tolls, etc. on the 2106.
Also, be aware of any increase to your car insurance premium that is attributed to using your vehicle for work. This may be deductible as well.
I want to add that recordkeeping is crucial. You need to keep track of not just business mileage, but the total mileage on the car for the year. In some cases this is necessary to compute the percentage of business use. Just get a logbook (my local tax office offers them for free), and keep it in the glove box. If you think you might claim actual expenses, keep all receipts related to the automobile’s maintenance and upkeep, as well as gas and oil. Reconcile them once a week or month, depending on usage, then you’ll have it ready to go in January.
http://www.irs.gov/publications/p463/index.html
http://www.irs.gov/publications/p535/index.html
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