Help! Credit for the miles I commute -- legit, or not?
Turbo Tax has me frustrated as heck. There's a place in my deductions where it asked me to provide how many miles I've driven this year (not a problem), and then it has a box asking for how many miles I drove for the job, and my total commuting miles. And yet when I click on the "More Info" box, it says I CAN'T deduct the mileage I drive to and from work.
SO WHY IS IT ASKING FOR THAT MILEAGE? If I fill it in with the applicable number, I get a bigger refund, but is that a mistake?
Yes, I know--I'm cutting things pretty close. Sorry. I do appreciate any help.
TaxGurl2007-04-16T06:17:17Z
Favorite Answer
Driving to and from work is not deductible. If you go to work, stay there, and then drive home, you have no deductible driving expenses.
However, if you have to drive for your business, you can claim a mileage deduction. Example: if your employer has multiple locations and you have to drive between them in your personal vehicle during the course of a day, the mileage between them can be deductible. You can not take a deduction if your employer reimbursed you for this driving expense.
There are two ways to compute allowable care expenses. you can either take the standard mileage rate of 44.5c per mile (in which case you get none of the other expenses) or you can compute your business mileage over your total mileage. Business mileage, as you have already discovered, does not include regular commuting to your workplace.
The problem you're having here is that the IRS asks more questions than is necessary to compute the deduction. The bottom line is that you need three figures in the computation - business miles, commuting miles and other private miles. That should always come back to the total miles driven during the year. So, if your business miles (properly identified) were 2,000 your commuting miles were 1,000 and private use at weekends and the like were 3,000 you can deduct 1/3 of the total expenses you incurred in using your car. So if your expenses were $6,000 for the year you get to deduct $2,000. If your employer paid you $500 tax-free for using your car you could only deduct $1,500 - there is a box for that on the 2106.
I know you will feel a bit rushed right now but please take a few moments to review the Form 2106 when you are finished with your return and before you click that send button. If you follow the logic of the form with all the figures in there, you should be able to spot any obvious errors.
Edit: By the way, you do not need to have your own business to deduct mileage. If, say, you go to the bank for your employer every day, that is deductible.
Also remember that, for an employee, there is a threshold of 2% of AGI (the figure at the bottom of page 1 on the 1040) for certain deductions. If you don't have expenses such as investment management fees or safe deposit box fees you may find that you do not qualify anyway.
You are trying to deduct miles for either self employment or job related expenses. The IRS wants to know the percentage of business use in relation to your personal use. The program is asking for commuting miles, personal miles and business miles. These all should add up to the total miles. The only deductible mileage is for business. If you did not use your auto for business purposes (not commuting) then forget about this section and move on.
Turbo Tax asks for the total mileage for all purposes, and for miles commuting to your job, because this information is required by the IRS forms.
In any case, you cannot deduct mileage for commuting to your regular place of work. So the message you are getting that you cannot deduct this mileage is correct.
It's asking because it will subtract those miles from total miles driven and check that the business miles you're claiming doesn't include them. Commuting miles are not deductible.
If you're getting a BIGGER refund by putting a number there than you are by leaving it blank, then yes something is wrong.