Mileage Tax Deduction — Writing Off Business Miles.
Your mileage should be from your home back to your home. You are an independent contractor, not someone reporting for work. I have a follow-up question: With 1099 income, do you still have to meet the standard deduction before applying mileage or if its mileage related to your 1099 income can you immediately apply it to your income?
Whatever is ordinary and necessary in accordance with section 162 of the internal revenue code. I strongly suggest that you actually read and NOT rely on social media as there are many special rules relating to the transportation industry. For exa.
Regardless of which method you use, the IRS requires that you track total mileage for the year as well as business miles driven. The mileage rate for 2012 is 55.5 cents per mile.
Tracking mileage is also done by companies and individuals for tax purposes. If you are unsure about mileage as a tax write-off or for direct reimbursement, diligently track every business, medical and charitable cause-related mile, while you determine eligibility for reimbursement and tax claims.
In order to deduct your mileage you'll need to file a standard 1040 and itemize your deductions. Also, there is some threshold you have to pass first.
This can include costs associated with transportation, although commuting to work is specifically excluded. If you drive a vehicle as part of your job, you can deduct actual expenses, such as gas, tires, repairs, maintenance, license fees, tolls and so on, or you can use a standard mileage rate: 55.5 cents a mile in 2012.
We asked experts for 12 unexpected things that people who work from home can write off on their taxes. Tax Day is fast approaching, and that can be a stressful time, especially for the self-employed.