How does a Tax deductible work? 10 points for best answer.?

Question

My job allows me to claim travel expenses on my income tax as a deductible since its a long commute to work. I can claim the cost of my daily ferry ticket to work (my place of work is on an island) as well as other travel costs.

So if I add up all my travel expenses to and from work, is the total amount multiplied by my Tax rate from whichever tax bracket I fall in to at the end of the year and then subtract that amount from my income? Is that how it works?

bdancer222 · Answer

Your job doesn't allow you to claim any travel expenses on your taxes.  The IRS has rules that you must follow to claim employee business expenses, including  travel expenses.  There's a specific form you fill out and deduct from your income when you file your income tax return.

By the way, commuting expenses are NOT an allowable business expense.  You can only take travel expenses if you go to a site that is not your normal workplace.

Go to the IRS website and look up the rules for employee business expense deductions.

Anonymous · Answer

For Canadian taxes, I can tell you that travelling to and from  your work site is personal and is not deductible.  However, I think that what your employer is going to give you is a special form which gets filled out by your payroll dept.  (I think it is form 777)  It will detail the amount of vehicle usage for work.  This could be what you will be getting reimbursed for.

Anonymous · Answer

Tax deductions are actually deducted from your total income. After all deductions are made, the amount of tax can be calculated on the remaining balance.

Trending News

How does a Tax deductible work? 10 points for best answer.?

3 Answers