Considering the current standard deduction it’s unlikely that it is worthwhile to file for any itemized deductions for most people who work for a living.
Give up on the tax deduction , doubtful if you would get enough to justify loosing time from work for an audit ( not likely but could happen ) . Besides your employer does not require you to use your own vehicle. Also you should make sure you are not violating company policy be having someone along with you.
And what happens if she gets injured in an accident? Could be a REAL mess, financially.
Huh, why did the computers edit out the above quote?
Maybe I’m out to lunch but if you are using your own car and all they are doing is paying for gas, what difference does it make who rides along? A little different if a company car. Of course in the old days I used to carry a shot gun in the trunk all the time for road hunting but now that would probably be a hanging offense, so I might be out of date.
If you are referring to a quote you included, the system automatically deletes included quotes if the content is an entire post. Portions of a post are ok according to the computer, but not the entire post.
The company knows about this. She’s also an employee and we had to tell them because we have contracts with the State, so she has to log in if she goes on the property with me. Unless she stayed in the car, they want a record of every person that comes in the building.
I was estimating at least 20 cents, but that could really add up.
The following was published by AAA in August 2017 and is based on 15,000 miles per year:
examined factory-recommended maintenance, replacement tires, extended warranty costs and services associated with typical wear-and-tear. New vehicles, on average, will cost a driver $1,186 per year to maintain and repair.
And I drove over 1,000 miles last week, so if I multiply that times 4 (maybe a little less) then that will be at least $4,000 a year, and the car is only worth about $8,000. So it’s not going to be worth it. That’s what I was afraid of. And what makes it worse is that it will probably take 4 years to pay off the car.
It’s 79 cents per mile.
So even if you deduct the standard IRS deduction you would be losing money.
Correct, and under the new tax act that deduction is pretty much history for most taxpayers.
They don’t hang you anymore. They use lethal injection.
This was just in the Dallas Morning News. To break even out of pocket (gas, maintenance, additional depreciation), you’d need to be paid something like $0.21/mile. This assumes you’re already paying the base depreciation and insurance doesn’t change.
That’s actually close to what I had estimated. Now, my company pays fuel so I’d have to estimate the fuel costs (which is about 25mpg) and then I could deduct that, but my pay rate varies (depending on what I’m doing) and all those miles last week were at the lowest pay rate, so it’s still probably better to try the company vehicle. But if the seat ends up hurting my back then I have to decide if it’s worth it or to just find another company to work for (which I know is something I have to decide for myself). And because of the insurance issues it’s probably better to find another company (unless they offer to fix the seat in the Explorer). I’m not sure that I can afford to just quit the job now. But I wanted to know what I’m really making, at least.
One other thing to keep in mind is that reimbursements are not taxed. So if you got reimbursed 40 cents a mile, that would all be tax free. Of course you already had to spend that money but it’s not taxed anyway when you get it back.