Mileage & Taxes

  1. Hi Everyone!

    I was wondering at the end of the year how I will do taxes to get reimbursement/deductions for mileage if my new employer pays 40 cent per mile versus the federal 54.5 centper mile? Just curious how I need to keep track of my mileage so at the end ofyear I can easily do my taxes! Also, how would this affect my taxes?

    The company also will provide a company car and gas card if I drive more than 500 miles every 2 weeks for 3 months. How will that affect my taxes?
  2. Visit hmvassar profile page

    About hmvassar, ASN

    Joined: Jan '15; Posts: 24; Likes: 32

    6 Comments

  3. by   caliotter3
    If you are provided a company car, you can't deduct anything when you use that car. As for the other, figure out how many miles at the IRS rate, then subtract the lesser amount (for that number of miles) from that and provide the difference on the line for business use of car.
  4. by   Oldmahubbard
    To keep track of it, you would need a daily log with the addresses you are driving to. There is no doubt an app for this now. Or you could keep a hand written log.

    Keep in mind that employment related expenses have a 2% gross income limit. So if your income is 50k, the first 1000 dollars of such expenses don't qualify.

    If you drove 10,000 miles a year between clients, which is much more than most nurses would ever drive, and your employer under-reimbursed you by 15 cents a mile, you would have 1500 dollars of a deduction to claim. But the first 1000 dollars wouldn't count.

    You would be able to deduct 500 dollars from your taxes, saving you the grand sum of about 200 dollars in real money.

    After doing quite a lot of paperwork for the year.

    The rules are changing and most people will not even be able to take this tiny deduction with the new tax laws.

    One of my pet peeves is people not understanding that most tax deductions are so minor, as to be ridiculous.

    It is just simple math, but people go gaga when they hear the words " tax deduction". They think that means free, or that the government pays you to do something.

    No.

    On the other hand, I loved home health and I would still be doing it, if the people were not character disordered.

    The mileage reimbursement was fair, all things considered.
  5. by   hmvassar
    Quote from Oldmahubbard
    To keep track of it, you would need a daily log with the addresses you are driving to. There is no doubt an app for this now. Or you could keep a hand written log.

    Keep in mind that employment related expenses have a 2% gross income limit. So if your income is 50k, the first 1000 dollars of such expenses don't qualify.

    If you drove 10,000 miles a year between clients, which is much more than most nurses would ever drive, and your employer under-reimbursed you by 15 cents a mile, you would have 1500 dollars of a deduction to claim. But the first 1000 dollars wouldn't count.

    You would be able to deduct 500 dollars from your taxes, saving you the grand sum of about 200 dollars in real money.

    After doing quite a lot of paperwork for the year.

    The rules are changing and most people will not even be able to take this tiny deduction with the new tax laws.

    One of my pet peeves is people not understanding that most tax deductions are so minor, as to be ridiculous.

    It is just simple math, but people go gaga when they hear the words " tax deduction". They think that means free, or that the government pays you to do something.

    No.

    On the other hand, I loved home health and I would still be doing it, if the people were not character disordered.

    The mileage reimbursement was fair, all things considered.
    Thank you for explaining. I'm guessing now that the tax law has changed I wont be able to deduct this on my taxes. I plan to file as 1 (single) and have it balance out at the end of the year so I don't have to pay taxes. I just wanted to cross my T's and ensure I don't mess anything up for the end of 2018 for tax purposes.

    Hopefully, you can help me understand this too.

    My car gets 30 miles per gallon, a gallon of gas here is $2.34. If my employer is going to pay me .40 cent per mile I drive that's $12 for 30 miles. So in turn I'll be making money for my mileage, right? (I know that mileage doesn't start until I reach my first clients house or after the first 29 miles I have driven to a clients house). I just want to check to see if this math is correct?
  6. by   hmvassar
    Quote from caliotter3
    If you are provided a company car, you can't deduct anything when you use that car. As for the other, figure out how many miles at the IRS rate, then subtract the lesser amount (for that number of miles) from that and provide the difference on the line for business use of car.
    Thank you so much, I guess my concern is the recent change of taxes.
  7. by   Libby1987
    Quote from hmvassar
    Thank you for explaining. I'm guessing now that the tax law has changed I wont be able to deduct this on my taxes. I plan to file as 1 (single) and have it balance out at the end of the year so I don't have to pay taxes. I just wanted to cross my T's and ensure I don't mess anything up for the end of 2018 for tax purposes.

    Hopefully, you can help me understand this too.

    My car gets 30 miles per gallon, a gallon of gas here is $2.34. If my employer is going to pay me .40 cent per mile I drive that's $12 for 30 miles. So in turn I'll be making money for my mileage, right? (I know that mileage doesn't start until I reach my first clients house or after the first 29 miles I have driven to a clients house). I just want to check to see if this math is correct?
    Yes, you come out ahead initially if you have a modest car but car loses longevity and maintenance schedule rolls around quickly. I always drove a Mazda 3, at that price point (18K) the mileage essentially covered the car payment and gas. I never bothered with tracking mileage for taxes. I would occasionally run across someone who tried it, not worth it to me, I can't get that time back and already had enough to keep track of.
  8. by   Oldmahubbard
    You are not coming out ahead on mileage. Gas is not the main cost of operating a car.

    Now, if you enjoy driving and have some pretty territory, in nice weather, it can be very pleasant.

    Depending on where you live, the snow can be very, very intense some years. The motor on my windshield wipers broke due to very heavy snow fall, day after day.

    As I mentioned, I liked HH and might still be doing it, if my supervisor had not been a raving lunatic.

    I have to thank her for piquing my interest in lunatics, though!

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