Do I declare the difference on taxes?

Discussion in 'Taxes and Accounting' started by GarrettKimmel, Oct 7, 2015.

  1. I get reimbursed 30 cents a mile in the US irs rates are currently 57 cents. Do I declare the difference on taxes?

    I drive around 1000 miles a month for work (excluding commute), sometimes 1500. My company pays a dismal 30 cents a miles, and it's taking a toll on my car. What options do I have outside of a new job?
     
  2. Sig

    Sig

    There's generally no way to claim a loss if you're in individual who is incurring unreimbursed cost by your employer. There are a couple narrow exceptions but mileage isn't one of them. If you're a contractor then it's a different story. Depending on if your job type is eligible for you to be a 1099 contractor, it may be beneficial for both you and your employer to switch to that arrangement. It could also be very detrimental to you, so you need to figure out what the implications are first.
     
  3. Per the Form 2016 instructions:

    Commuting. Generally, commuting is travel between your home and a work location. However, travel that meets any of the following conditions is not commuting. You have at least one regular work location away from your home and the travel is to a temporary work location in the same trade or business, regardless of the distance. Generally, a temporary work location is one where your employment is expected to last 1 year or less. See Pub. 463 for more details. The travel is to a temporary work location outside the metropolitan area where you live and normally work. Your home is your principal place of business under section 280A(c)(1)(A) (for purposes of deducting expenses for business use of your home) and the travel is to another work location in the same trade or business, regardless of whether that location is regular or temporary and regardless of distance.

    You would take the per mileage deduction on column A, line 1 of the form offsetting by reimbursements on line 7 of column a. See above for which miles count for deducting.