Today TaxMama hears from Gary in Texas, who wants to know. “Am I allowed to deduct the difference between what my company reimburses me for mileage and what the IRS allows? If so, what form do I use?”
You certainly may.
Use Form 2106 – Employee Business Expenses http://www.irs.gov/pub/irs-pdf/f2106.pdf .
Report ALL your mileage on the form, as well as any other business expenses that exceed your company’s reimbursement practices.
Enter your mileage, tolls, parking, etc. And all your other out-of-pocket expenses.
Then, on line 7, deduct the reimbursements you’ve received from your company.
Unfortunately though, unless you have other large itemized deductions, like a mortgage, or you tithe, odds are that you will not have enough expenses on Form 2106 to actually create a deduction.
The Form 2106 expenses must be higher than 2% of your adjusted gross income (the amount at the bottom of page 1 of your Form 1040) before you can even deduct one penny. Sorry.
And remember, you can find answers to all kinds of questions about employee business expenses and other tax issues, free. Where? Where else? At TaxMama.com[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the subscribe link and join us.]
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- IRS Form 2106 :: Employee Business Expenses
- IRS Publication 463 :: Reporting excess expenses in Accountable Plans