I have a question about the mileage reimbursement deduction on my tax return. My employer reimburses me for my mileage, however it’s a lower per-mile rate than the IRS standard mileage rate. Can I claim the difference?
You may be able to maximize your mileage reimbursement deduction by claiming the difference between the IRS standard mileage rate and the mileage rate your employer is reimbursing with the following method:
- IRS standard mileage rate
- Rate reimbursed on Form 2106: Employee Business Expenses
For example: Your employer reimburses mileage at a rate of 30 cents per mile. You can deduct the difference between the 2018 rate of $0.545 per mile and the reimbursed 30 cents per mile from your employer.
However, to receive the mileage deduction, both of these must apply:
- You must itemize your deductions.
- Your miscellaneous expenses must be more than 2% of your adjusted gross income (AGI).
The above applies unless you’re one of these:
- Disabled employee using your car for business
- Qualified performing artist
- Military reservist traveling up to 100 miles away from home
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For individual taxpayers, Schedule A is used in conjunction with Form 1040 to report itemized deductions. If you choose to claim itemized deductions instead of the standard deduction, you would use Schedule A to list your deductions. Your itemized total is then subtracted from your taxable income.