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 2020 rate of $0.575 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

Dependent's SSN Used On Anothers Taxes

Learn what to do if someone used your dependent's social security number on their taxes with advice from the tax experts at H&R Block.

Tax Credits for Private School

Can you get tax credits if you pay for private school? Learn more from the tax experts at H&R Block.

Monday Mishap: What if I filed as Single instead of Head of Household?

If you are filing as single or head of household, there are some guidelines to know. Read on to learn what the filing status requirements are for your taxes.

Benefits of Filing Paper Tax Returns

Learn more about the benefits of paper taxes and get tax answers at H&R Block.