Mileage deductions-does this qualify?

Question

I am an independent contractor, a cake decorating instructor, at 3 stores.  For the latest store I began teaching at, I am unsure if I can deduct my mileage to and from the store.  This is a national chain of stores, and in this case, unlike the other stores, I actually became an employee of the store chain.  However, I only work as an instructor and do not work as a general store employee....my only time on the clock is for teaching classes, or doing demonstrations to promote classes, for which I am paid a flat fee based on how many students are in class, etc.  I do not receive any compensation for travel or other expenses.

Do I qualify to deduct mileage for to and from the store?  Thanks!

Anonymous · Accepted Answer

Maria

Unfortunately, as an employee, you would only be allowed to deduct mileage going TO a 2nd job from an earlier job and then only on Form 2106 Employee business expenses.  That form then flows over to your Itemized Deductions(Sch A) so that if you don't itemize your deductions(home mortgage, real estate taxes, charitable contributions, etc) you won't receive any benefit even though it technically IS deductible.  Miscellaneous Itemized deductions (which is what employee business expenses are) are reduced by 2% of your adjusted gross income(last line on page 1 of the Form 1040).  Most people do not reach this level and so do not receive any benefit.

If you don't travel from one job to another, then the mileage from home to the jobsite of an employee is NOT deductible nor is the trip home from the 2nd job.  If you go from one class to the job as an employee, then you could enter it on Form 2106

The fact that you are paid per student vs per hour is probably alot better for you $-wise, and being an employee means they are taking care of FICA taxes (7.65% of your wages).  So maybe this is a little trade-off to deducting the mileage.

Good luck!
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You can enter your info and won't be charged until you choose to either print or efile the return.

Judy · Answer

From home to the first store of the day, and from the last store of the day to your home, no.  That's commuting mileage and isn't deductible.

But if you go to multiple stores in a day, the mileage between them is deductible on your schedule C or C-EZ.   

Being an employee in this new store and a contractor in the other two does muddy the waters a bit as to how you report it.  If you pick up other stores where you are an employee, travel from store to store as an employee would be reported differently and would have different rules.

taxreff · Answer

To add to the first answer, which is correct, commuting costs are not deductible.  However, you should look into the requirements for a qualified home office.

If you have a qualified home office, all of your business miles will become deductible.

Tom K · Answer

Are you certain that you are not still an independent contractor?  Yes, mileage to and from a worksite is a legitimate deduction.  Just be prepared to document it by miles, date and destination.

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Mileage deductions-does this qualify?

4 Answers