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Deducting mileage
Posted on 5/9/16 at 5:16 am
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?
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 on 5/9/16 at 7:40 am to MDTiger 13
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 on 5/9/16 at 7:41 am to MDTiger 13
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 on 5/9/16 at 7:56 am to LSUDbrous90
I was in your shoes, went to straight independent contractor, you can deduct the mileage from your house to the hospital and back.
Posted on 5/9/16 at 8:05 am to MDTiger 13
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?
Carry a stethoscope?
Posted on 5/9/16 at 8:08 am to MDTiger 13
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 on 5/9/16 at 9:23 pm to MDTiger 13
you can deduct miles from job to moonlight and home.
Deductible: Job--moonlight--home
not deductible: home-job
Deductible: Job--moonlight--home
not deductible: home-job
Posted on 5/9/16 at 11:12 pm to MDTiger 13
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.
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 on 5/10/16 at 12:02 am to MDTiger 13
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
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 on 5/10/16 at 12:04 am to LSUFanHouston
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 on 5/10/16 at 9:18 am to LSUFanHouston
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 on 5/10/16 at 9:25 am to BilJ
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 on 5/10/16 at 10:13 am to cfa626
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 on 5/10/16 at 11:13 am to BilJ
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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