Ask an Accountant: Mileage Deduction

0 Flares Twitter 0 Facebook 0 Pin It Share 0 Google+ 0 Reddit 0 StumbleUpon 0 Email -- 0 Flares ×

It’s tax time! Mr. MomonDealz is an experienced accountant who has teamed up with MomonDealz for their “Ask An Accountant” series - designed to  help with many questions that may arise. Remember, if you have a tax question, email Mr. MomonDealz @ cjwtaxpro@gmail.com.

Question:
I’ve got two sons, both deliver pizzas for Dominos. Dominos gives the drivers around $1.85 per delivery. Most deliveries are at least 6 or 7 miles. If they document their mileage and their reimbursements, can they deduct the difference as unreimbursed business expenses?

Answer:


If the reimbursements are included in the W-2 as taxable wages then yes you may deduct 100% of the mileage on deliveries. If the reimbursement is not included in taxable wages, then only the difference in the mileage deduction and the actual reimbursement may be deducted

Please keep in mind this post is for informational purposes only and answers given are very general. Do not rely on this column for definite tax answers as many things depend on individual circumstances. Please contact your personal accountant or financial advisor for your particular situation.

photo credit: austinpost.org

IRS Circular 230 Notice: Any U.S. tax advice in this written or electronic communication was not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions

Share on Facebook0Pin on Pinterest0Share on Google+0Tweet about this on Twitter0Share on StumbleUpon0Share on Reddit0Email this to someone
0 Flares Twitter 0 Facebook 0 Pin It Share 0 Google+ 0 Reddit 0 StumbleUpon 0 Email -- 0 Flares ×

Google+ Comments

About the author: I’m a 30-something mom to three, brand ambassador. content creator, social media maven, blogger extraordinaire, earth lover, butcher, baker, candlestick maker (or something along those lines) – love word games, crafting, cake decorating or shooting pictures.

3 comments… add one

  • Great tip! My husband is self-employed (clergy), and we have to hire an accountant. Tricky stuff!

    Reply
  • What a great tip!!

    Reply
  • Taxtime is stressful. Any tips are appreciated. Thank you!

    Reply

Leave a Comment