I bought a new car in 2020. 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.
Did you use the wrong filing status by mistake? Discover how to amend your filing status. Learn more from the tax experts at H&R Block.
Looking for more information about your South Carolina refund? Find out details on how to check your refund status, who to contact, and more from H&R Block.
Lean more about deducting car loan interest with help from the tax experts at H&R Block.
What if you didn't receive your full stimulus payment due to life changes? Find out how to claim additional stimulus check money from the team at H&R Block.