Mileage For Work Tax Deductable?

[Critical Mass]

What is the name of your state (only U.S. law)? Pennsylvania

This year I have a new job as a retail merchandiser. I travel from store to store, anywhere from 1 to 5 stores a day setting up promotional displays, resetting sections, or sometimes even entire store remodels.

I was told that since my company doesn't compensate me in any way for travel or gas, I am permitted to deduct 22 cents per mile on my Federal taxes, as well as any money spent for gas. Since I've done my own taxes in all but 2 of the past 20 years, I would just like to verify this fact, and if so, what type of proof would be sufficient? Thank you in advance?

 

[LdiJ]

What is the name of your state (only U.S. law)? Pennsylvania

This year I have a new job as a retail merchandiser. I travel from store to store, anywhere from 1 to 5 stores a day setting up promotional displays, resetting sections, or sometimes even entire store remodels.

I was told that since my company doesn't compensate me in any way for travel or gas, I am permitted to deduct 22 cents per mile on my Federal taxes, as well as any money spent for gas. Since I've done my own taxes in all but 2 of the past 20 years, I would just like to verify this fact, and if so, what type of proof would be sufficient? Thank you in advance?

Who the heck told you that it was 22 cents? Its 50.5 cents for miles driven between 1/1/08 and 06/30/08 and 58.5 cents for miles driving between 7/1/08 and 12/31/08. However, you do not also get to deduct gasoline. That is part of the 50.5 or 58.5 cent rate.

However, you have to be able to itemize deductions. You would use form 2106 and the results would transfer to schedule A as "other deductions" and would be deductible only to the extent that they exceed 2% of your adjusted gross income.

You also need excellent milage records.

 

[Critical Mass]

Thank you for the quick response!

Well obviously I was way off on the amount. Fair enough about the gas, but could you please elaborate on "excellent mileage records"? Would a list of exactly where I was, when I was there, what I was doing there, and how far I traveled be sufficient? Some projects required a signature and a store stamp from the store management, but most didn't. Obviously, I could provide car inspection records showing I drove "X" amount of miles in one year, but how could I prove that "X" breaks down to 90% work/10% pleasure, as opposed to 50/50%?

 

[thedoctorisin]

See IRS Publication 463, Chapter 4 Transportation, for more details.

http://www.irs.gov/pub/irs-pdf/p463.pdf

 

[LdiJ]

Thank you for the quick response!

Well obviously I was way off on the amount. Fair enough about the gas, but could you please elaborate on "excellent mileage records"? Would a list of exactly where I was, when I was there, what I was doing there, and how far I traveled be sufficient? Some projects required a signature and a store stamp from the store management, but most didn't. Obviously, I could provide car inspection records showing I drove "X" amount of miles in one year, but how could I prove that "X" breaks down to 90% work/10% pleasure, as opposed to 50/50%?

The IRS prefers a mileage log, with odometer readings, but the records that you have will substitute decently for those.

If you are continuing this job for 2009, I would recommend that you get yourself a mileage log and use that to document your miles. It will require the pretty much the same information that you have now, but also beginning and ending odometer readings.

 

[Critical Mass]

While I thank you all for your quick responses, I'm a bit confused.

Ok, I understand that the PDF form I was referred to is from 2007, but Page 14 states that since I have no regular office or place of business, I cannot deduct any mileage to or from my home unless it's outside my metropolitan area. So therefore, in this example:

Drive 20 miles from my home to Store #1 (NO)
Drive 2 miles from Store #1 to Store #2 (YES)
Drive 7 miles from Store #2 to Store #3 (YES)
Drive 29 miles from Store #3 to Home (NO)

Total deduction = 9 miles.

Am I correct or am I missing something blatantly obvious?

 

[irsos]

You are correct.

 

[thedoctorisin]

I'll leave a definitive response to the tax professionals, but the basic idea is that for a typical person who only works at one place, say Store #1, commuting to/from home (40 miles round trip) is not deductible. So if you have a short 2 mile trip from Store #1 to Store #2, that shouldn't suddenly give you 42 miles of deductible travel. Otherwise, people would just invent short mid-day trips of 0.1 miles just to get their commute deductible.

 

[irsos]

I'll leave a definitive response to the tax professionals, but the basic idea is that for a typical person who only works at one place, say Store #1, commuting to/from home (40 miles round trip) is not deductible. So if you have a short 2 mile trip from Store #1 to Store #2, that shouldn't suddenly give you 42 miles of deductible travel. Otherwise, people would just invent short mid-day trips of 0.1 miles just to get their commute deductible.

You are kidding - right?

 

[thedoctorisin]

You are kidding - right?

No. About what?

 

[irsos]

This sanctimonious line:

"I'll leave a definitive response to the tax professionals,..."

 

[efflandt]

Something else that may be a consideration is whether your company has a local office you could swing by, so mileage from the office to your route and back to the office would be deductible. Or do you primarily use an official (deductible?) home office for the convenience of your employer (not just for your convenience)?

For home office info see Can You Take a Home Office Deduction? which has a link to more detail in Publication 587.

 

[thedoctorisin]

This sanctimonious line:

"I'll leave a definitive response to the tax professionals,..."

If you have a problem with kowtowing to the senior members, then this site is definitely not for you.

 

[LdiJ]

While I thank you all for your quick responses, I'm a bit confused.

Ok, I understand that the PDF form I was referred to is from 2007, but Page 14 states that since I have no regular office or place of business, I cannot deduct any mileage to or from my home unless it's outside my metropolitan area. So therefore, in this example:

Drive 20 miles from my home to Store #1 (NO)
Drive 2 miles from Store #1 to Store #2 (YES)
Drive 7 miles from Store #2 to Store #3 (YES)
Drive 29 miles from Store #3 to Home (NO)

Total deduction = 9 miles.

Am I correct or am I missing something blatantly obvious?

Where do you do your paperwork?..make your phone calls?...set up your appointments? I have an idea of what you job entails, and you may have a legitimate claim that your home office is your regular place of business.

However, if you do not, then I recommend planning your trips on a circular type of basis. Have your first stop be the closest to home, and your last stop the second closest to home. Or again, if you stop in at your employer before or after, that would count as your "commute".

 

[irsos]

If you have a problem with kowtowing to the senior members, then this site is definitely not for you.

Yeah, and the whole time I was under the impression the site was for tax professionals to answer the questions of non-professionals. But I guess trying to make something that is easy sound mysterious and hard helps keep all eyes off the curtain of the grand and mighty wizard.