Can I claim my mileage on my taxes?

Question

My boyfriend travels to various job sites thruout the day for his work. His new employer told him that he can claim $.58 a mile for his travel to and from his various job locations on his taxes. Can he do that if it is not his own business? If yes, then what about gas and insurance? What about tools and materials he is required to buy that are not supplied?

Answer 1

It's 58.5 cents for the miles from job to job, but not from home to the first site of the day or from the last site to home.  Gas and insurance are included in the 58.5 cents, so no he can't deduct both.  He can also deduct tools he is required to buy.  For materials, probably but it would depend on just what you are talking about.

All these can only be deducted, as unreimbursed employee business expenses, if he itemizes,  He'd have to subtract 2% of his adjusted grossw income from the total unreimbursed expenses, and can then deduct the rest.

If he doesn't itemize, he can't deduct any of them.

Answer 2

I have never heard of an employer who requires you to use your personal vehicle to travel throughout the day and does not reimburse you for the mileage.  The employer is taking unfair advantage of your boyfriend.  Once in a long while is one thing.  Every day is ridiculous.

Answer 3

Yes to all of the above (except the mileage rate is to pay for the gas and insurance so he can't take both).

An employee can take expenses he incurs as part of his job as long as he is not being reimbursed for them.  For his driving, he can take either the business percentage of all the expenses of having his car (gas + oil + insurance + tires + repairs + depreciation + etc  times  the percent of his miles that are business) or he can take the standard per mile -- but not both.  Then he can add the other expenses of having his job - tools, uniforms, safety equipment and shoes, union dues, etc.

But then the bad news.  As an employee, he has to subtract from that 2% of his gross income.  For most people, you are now down to zero unless you have a LOT of employee expenses.  Then more bad news.  If you still have more than zero, you add that remainder to your other itemized deductions.  So if you don't have enough other itemized deductions, you still don't benefit from claiming those expenses.

All this assumes that he is an employee (taxes withheld and pay reported on a W-2) and not an independent contractor (no tax withhld and pay reported on a 1099-MISC).  If he IS a contractor, he can take all those expenses with subtracting the 2% and without losing them in the itemized deductions.  In other words, he would get to benefit from every penny of expenses if he is a contractor.

Answer 4

The current mileage rate is .585 cents. Any person who uses a personal vehicle for work purposes can claim it on their taxes, provided it is not reimbursed by the company. This covers the cost of gas and insurance, wear and tear on the vehicle, etc.

Tools and materials that are not supplied or reimbursed by the company can also be deducted, but I'm not certain about the amount or if there are maximums. Just be sure to keep all receipts and be able to tie each item to a specific job. The best bet with these items is to see if the employer will reimburse for these. It's too their advantage, because they can write them off as expenses, and it's easier for them then for your BF.

Again, for tracking purposes, he needs to keep copies of receipts and, if he has job orders, he should staple the receipts to the job orders, and note on there what each item is, and write down the mileage. Stash those in a file, and keep a running spreadsheet of these expenses, to make it easier to file your taxes. Utilizing a tax service will also make this easier.

Answer 5

He can claim $.58 a mile from his office to the job site.  (if he has an office). Doesn't matter if it is his business or anothers.  Rate will change quarterly.  The $.58 covers the gas and insurance expenses and wear and tear on the vehicle.  He can deduct tools for his trade, (will have to produce a receipt if audited). He cannot deduct materials

Answer 6

I suspect the new employer didn't mention that the mileage deduction (and tool depreciation) by an employee is subject to a 2% of AGI rule (if he makes $40,000, the first $800 of business expenses doesn't count), then it's an itemized deduction.  If he has a ton of this expense, it's an addback for AMT purposes.

Also, the mileage to the first site of the day and from the last site of the day is called commuting and is NOT deductible.  He must keep meticulous records as well.