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Deducting mileage

Posted on 5/9/16 at 5:16 am
Posted by MDTiger 13
Fairhope, AL
Member since Nov 2010
1001 posts
Posted on 5/9/16 at 5:16 am
Question for any of you with income tax knowledge. Here's the backstory:

Hospital A is my primary job (part of the staff, retirement, healthcare, malpractice coverage, etc). On some off days, I moonlight at smaller Hospital B, C, D, etc. I'm considered an independent contractor. Hourly rate, I get a check for those hours, I'm responsible for taking out for taxes.

Am I allowed to deduct mileage driven to and from Hospital B, C, D, etc? My accountant says no; however, other coworkers who have other accountants filing their taxes say yes. Am I losing money or are my coworkers going to jail?
Posted by Tigerpaw123
Louisiana
Member since Mar 2007
17259 posts
Posted on 5/9/16 at 7:40 am to
My understanding is you are responsible for getting to and from work , then any travel done in between may be deducted. So if you start the day at hospital b then the travel from home to there would not be deductible however if then you drove to hospital c and d before going home that mileage would be
Posted by LSUDbrous90
Lafayette
Member since Dec 2011
1450 posts
Posted on 5/9/16 at 7:41 am to
Not an accountant but I would have to imagine since it is not the same "job" as hospital A and your paycheck is from a different entity then you cannot deduct mileage. You essentially have two jobs.
Posted by white perch
the bright, happy side of hell
Member since Apr 2012
7135 posts
Posted on 5/9/16 at 7:56 am to
I was in your shoes, went to straight independent contractor, you can deduct the mileage from your house to the hospital and back.
Posted by Chuker
St George, Louisiana
Member since Nov 2015
7544 posts
Posted on 5/9/16 at 8:05 am to
Sounds like you should be able to deduct those BCD miles. As I understand it, if an independent contractor is carrying in vehicle tools, equipment ect, that is essential to perform the job then they can deduct the mileage.

Carry a stethoscope?
Posted by JamalSanders
On a boat
Member since Jul 2015
12135 posts
Posted on 5/9/16 at 8:08 am to
quote:

Am I allowed to deduct mileage driven to and from Hospital B, C, D, etc? My accountant says no; however, other coworkers who have other accountants filing their taxes say yes. Am I losing money or are my coworkers going to jail?




It depends on how long you work at these other hospitals. If you are working at a location for 6 or more months it is considered a permanent location and you are not allowed to take a mileage deduction. So I would say no, you are not allowed to take the deduction.

What is the reason your accountant says no?
Posted by makersmark1
earth
Member since Oct 2011
15847 posts
Posted on 5/9/16 at 9:23 pm to
you can deduct miles from job to moonlight and home.

Deductible: Job--moonlight--home


not deductible: home-job
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37104 posts
Posted on 5/9/16 at 11:12 pm to
The simple way to look at it is like this:

You can't deduct mileage from your house to your first reporting site. And you can't deduct mileage from your last reporting site to your home.

So if you are only moonlighting at one hospital day, you would not be able to deduct anything. But if you spent 4 hours at B and then drove to C and spent 4 hours there, the mileage from B to C would be deductible.

Now, there is a technique that your fellow independent contractors may be using, that I think is a bunch of BS and I won't sign any return that uses this technique (and I'm fairly aggressive, but to me this is a bridge too far).

They say they have a "home office". In theory, that makes any additional traveling that day a deductible expense.

I feel it is difficult to justify having a home office if you are not actually doing work out of your home office. This becomes a facts and circumstances thing.
Posted by AndyJ
Member since Jul 2008
2755 posts
Posted on 5/10/16 at 12:02 am to
I presume you are an ER MD as well?

Well, I am an contractor as well. I have no benefits and pay for everything myself. My accountant says that because I am self-employed, my house is my office. Thus, I can deduct my mileage because driving to the hospital is essentially driving from my office (house) to another place of business (hospital). or something like that lol
This post was edited on 5/10/16 at 12:03 am
Posted by AndyJ
Member since Jul 2008
2755 posts
Posted on 5/10/16 at 12:04 am to
somehow missed that. The work we do at home is continuing education, arranging medical malpractice insurance, emailing for meetings, etc. Yes it definitely sounds like somewhat of a stretch.
Posted by BilJ
Member since Sep 2003
158761 posts
Posted on 5/10/16 at 9:18 am to
could be worse, I have friends in sales that get their car notes paid for and still take the mileage deduction. shite some that take it on company cars
Posted by cfa626
Member since Apr 2016
561 posts
Posted on 5/10/16 at 9:25 am to
quote:

I have friends in sales that get their car notes paid for and still take the mileage deduction.


Hope your friends never get audited.
The risk of an audit is so small, but I would never want to roll the dice of doing something fishy.
Used to work with people's tax returns. AMAZING how many people cheat.
Posted by BilJ
Member since Sep 2003
158761 posts
Posted on 5/10/16 at 10:13 am to
quote:

Hope your friends never get audited.


oh trust me I've warned them

definitely noticed more of a "frick the government" attitude from many lately. They don't really view it as cheating, just leveling the playing field.....or that's how they rationalize it.

This post was edited on 5/10/16 at 10:24 am
Posted by cfa626
Member since Apr 2016
561 posts
Posted on 5/10/16 at 11:13 am to
quote:

They don't really view it as cheating, just leveling the playing field.....or that's how they rationalize it.


Met a lady once, her husband had claimed 13k in wages, and had gotten about a 8k refund. (Thanks to earned income credit and other various credits).
Told her he needed to amend and file this as self-employment because she said he didn't work for anyone and "just kept his odd jobs in a notebook, and we are just trying to be honest citizens and pay our taxes on that money"
I said okay, file as self-employed. He's self-employed per IRS regulations.
She refused. Said how dare I make her amend, when they are just being honest and no one would have known if they hadn't filed anyways and they wouldn't have had to pay, but "Out of the goodness of our hearts, we wanted to file"
Oh please. You made a profit of $8k off of taxes, don't whine to me about paying out of the goodness of your heart, you didn't pay a dime.
She knew if they filed as self-employed, he would owe back part of that refund (since he didn't pay SS tax or Medicare tax).

just a good ole citizen
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