Question

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?

Answer

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 2021 rate of $0.56 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

 

Related Topics

Related Resources

Claimed the Wrong Allowance Amount

What to do if you accidentally claimed the wrong allowance amount on your W-4. Learn more from the tax experts at H&R Block.

Common Tax Questions Roundup

Here are the top tax questions our professionals got this year – with answers for you! How can you use this? Read on to get answers from H&R Block.

Claiming A Newborn On Taxes

If you were pregnant most of the year, can you claim you baby or newborn child on your taxes? Get tax answers from the experts at H&R Block.

Do I Need An EIN For My Child Care Provider?

Can you file for a childcare tax deduction without your care center's EIN? Learn more from the tax experts at H&R Block.