Tax help....please...?

"Desu-San-Desu" (Desu-San-Desu)
02/24/2014 at 23:32 • Filed to: None

So, I tried a deductions calculator for mileage expenses from my job with AT&T which required me to drive my personal vehicle to and from client homes. When I input my before and after odometer readings, as well as the distance of my daily commute to and from the office, it said I qualified for like, $5,000 in deductions for a job I was only at for 5 months. Let's just put it this way: $5,000 is more than half of what I earned in those 5 months.

For reference, I drove 15,893 miles in those 5 months, only 5,371 of which were miles spent commuting to and from work. Yeah. I am not kidding.

That deduction figure scares me and makes me worry that I screwed something up. Or am I missing something? I'm planning on going to a tax place in person tomorrow.

DISCUSSION (14)

SnapUndersteer, Italian Spiderman > Desu-San-Desu
02/24/2014 at 23:33

just go to a tax place

D-Whizzle > Desu-San-Desu
02/24/2014 at 23:33

I'm no tax expert, but just remember this — You're not going to be getting a check for $5k — It's just $5k less that you have to claim (or something along those lines).

AthomSfere > Desu-San-Desu
02/24/2014 at 23:35

Were you reimbursed by AT&T?

IDROVEAPICKUPTRUCK > Desu-San-Desu
02/24/2014 at 23:36

How many miles did you drive? The tax code can be pretty lenient with mileage, 56.5 cents per mile, so if you drove around 10,000 miles then $5k is about right

http://www.irs.gov/uac/Newsroom/2…

Desu-San-Desu > AthomSfere
02/24/2014 at 23:36

Not a single red penny.

liquid_popcorn > D-Whizzle
02/24/2014 at 23:36

What this man says. I have claimed mileage before where appropriate, and it goes off of the federal rate per mile. It's an exemption, unfortunately not a refund amount. It wouldn't hurt to get it checked out to be sure, but there you go.

Desu-San-Desu > IDROVEAPICKUPTRUCK
02/24/2014 at 23:36

I amended the above post, but the detailed numbers are:

3,313 job miles on Prelude, 2,337 commute miles, 1,265 miles personal use, 6915 total miles

Prelude odometer: (158,242 07/26/2013) / (165,157 10/01/2013)

4,301 job miles on Audi, 3,034 commute miles, 1,643 miles personal use, 8,978 total miles

Audi odometer: (218,924 10/02/2013) / (227,902 12/27/2013)

IDROVEAPICKUPTRUCK > Desu-San-Desu
02/24/2014 at 23:38

Multiply 5371 by .565 and thats what you should be able to deduct. Forget about the personal miles, only the business miles matter. Should be closer to $3k for the deduction,

EDIT: I read that wrong. I'm not sure if you can deduct commuting miles to and from your office, you can deduct miles driving around to clients. Tax place should be able to help you out, but your numbers don't sound crazy. Mileage adds up fast at 56.5 cents a mile.

Desu-San-Desu > IDROVEAPICKUPTRUCK
02/24/2014 at 23:40

Why only 5371? I drove 7,614 miles, not counting commute or personal miles.

I only tracked the personal miles to account for the gap difference in odometer readings.

IDROVEAPICKUPTRUCK > Desu-San-Desu
02/24/2014 at 23:42

Right I read that wrong. You can probably only deduct the 7614, so multiply that by .565. Sorry for the confusion. You might be able to deduct the commuting miles but I doubt it, check with your tax professional on that one.

Desu-San-Desu > IDROVEAPICKUPTRUCK
02/24/2014 at 23:49

Oh, I know I can't deduct commuting or personal miles, lol.

Frenchlicker > Desu-San-Desu
02/25/2014 at 02:04

Actual I think there is a way to deduct commuting miles, but when you reach the point of trying that you had bettered have receipts and a great ledger and go to a tax preparer.

Death Blow > IDROVEAPICKUPTRUCK
02/25/2014 at 10:27

Usually a 'normal commute' isn't reimbursable. Also, let's say one's normal commute is 20 miles (10 to, 10 from), and instead of going to the office that day, they instead go to visit 3 local clients and drive a total of 50 miles. The reimbursable portion of that is only the amount IN EXCESS OF one's normal commute (in this case: 30 miles).

Death Blow > Desu-San-Desu
02/25/2014 at 10:29

Former tax accountant here...
The mileage reimbursement rate has risen significantly in the last 10-12yrs in response to rising fuel costs. I think it was 36.5 cents/mile in 2003/4, but that has gone up substantially. As such, if you're doing a lot of driving in excess of your normal commute, plan on a fairly significant deduction here (as long as none of these expenses incurred were already employer reimbursed).