I bought a new car in 2019. When I used it for business, I was paid a mileage reimbursement. Can I still claim a depreciation credit on my tax return for my vehicle?
If you took a mileage reimbursement from your company you are most likely not eligible to claim a depreciation credit for the same vehicle on your tax return. The reason being, mileage reimbursement includes a depreciation component as well. Therefore, you cannot claim depreciation in addition to the reimbursement.
Your employer might have included the reimbursement in your wages on your W-2. If so, you can deduct your transportation expenses. You can deduct the expenses using either:
- The standard mileage rate — for miles driven
- Actual expenses — for those allocated to the business use of the vehicle. Actual expenses will include depreciation.
Related Resources
If you donate items to Goodwill, how should you calculate your donation value? Learn more from the tax experts at H&R Block.
Learn more about filing head of household and claiming the earned income tax credit with advice from the tax experts at H&R Block.
Learn more about the elderly or disabled tax credit and get tax answers at H&R Block.
Looking for more information about your West Virginia refund? Find out details on how to check your refund status, who to contact, and more from H&R Block.
