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| Question regarding fuel and mileage write off The wife works at a Sales Oriented company. She does not get reimbursed for mileage or fuel and we pay for all of her fuel. What kind of deduction can I expect for all of this? What kind of records should we be keeping? She has been working there for almost a year, but her travel has increased ten fold over the last 2-3 months. TIA. Reply • Back to Top |
| Keep track of where she goes for work and how many miles she drives. At the end of the year, you can write off whatever the IRS sets the mileage rate for that year (this year is $.555/mile, I believe). Also keep track of trips to buy office supplies, trips to the post office, etc., as those trips are also deductible. You can also write the proportion of interest you used your car for business (ex: if you used your car for 75% business and paid $1000 in interest on the car loan, you can write off $750) I keep a yearly record of beginning mileage, ending mileage and the miles that I drove for business in an excel spreadsheet. Reply • Back to Top |
| I get a $500/ month vehicle allowance that is tax-free. I also have a company gas card for my use. I drive about 10,000 miles a year for work. Being that my vehicle allowance is not traceable, I deduct the mileage driven each year on my taxes. Reply • Back to Top |
| First off, you have to be able to itemize your deductions. If you take a standard deduction, then there is no place to write off mileage. If you itemize, then the mileage will be deducted on your 2106 Business Expenses. Once you figure all of your wife's expenses, then that total will be reduced by 2% of your Adusted Gross Income. That amount will be the write off. Reply • Back to Top |
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on 6/5 at 1:46 pm
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