Filing taxes and personal vehicle usage?

Question

My husband uses his truck 99% for business. He drives all day long. The previous 2 years I used the mileage deduction and figured his actual business mileage to be deducted.The company pays for his fuel. This year, his company is doing something funky with reporting that cost of fuel. If they are paying for his fuel, isn't he still able to use the mileage deduction? Mileage is not the same as doing the actual expense deduction. Mileage is "wear and tear" and "depreciation" on your vehicle. No one I work with knows. People need to understand taxes better.

Answer 1

they will be reporting his fuel cost as income  on his w 2 from. so you will still take the standard deduction for mileage. He gets less of a refund because of it

Answer 2

The standard mileage rate (50.5 cents/mile until 6/30 and 58.5 after 7/1) is used for wear and tear, depreciation, oil changes, gas, insurance -- basically all expenses related to operating your car or truck for business.

If your husband's company pays for his fuel, then the first poster is correct. the company should include that amount of money on his w-2 under wages. You will file a 2106 to report your expenses. EITHER the standard mileage rate OR actual expenses but not both.

You should be keeping a log of mileage. Commuting expenses are not deductible Form 2106 asks questions about total mileage and business mileage to determine the business % used to deduct actual expenses.

I had the same argument with an employee at a former company I worked for. I was responsible for checking and paying employee expense reports.

By the way, I have seen CPA's that have incorrectly reported mileage allowances on 1099's instead of W-2's. Just because a person is a CPA doesn't automatically mean they are an expert in taxes.

Answer 3

Then do some research and understand better

don't ask millions of yahoos