You Got This weekly series :? May conduct work-related expenditures will be taken from my Tax Return

You Got This weekly series :? May conduct work-related expenditures will be taken from my Tax Return -

Each week, we will respond in a of the most frequently asked questions on the blog of Facebook, Twitter and TaxACT in "You Got it" weekly series

issue :.

If I drive 65 miles one way to my work and have tolls and back pay, which is deductible on my taxes?

Hilary via Facebook

answer

many taxpayers do not claim work-related expenses on their tax return simply because they aren 't sure allowable deductions.

The fuel costs, parking, tolls, etc. can add up quickly. But how do you know which expenses can be claimed on your tax return?

In general, these types of expenses can be broken in two ways, travel costs and commuter expenses.

In other words, the travel costs would be directly related to your specific job. These expenses are incurred due to the scope of work that you are or are specific to your job description.

example , after arriving at work, traveling to meet different customers throughout the day. During the work day, traveling 50 miles and incur $ 5 in parking and tolls during your customer visits.

These expenses would be deductible as expenses, since they are directly related to your work.

Note: Some employers reimburse employees for travel expenses related to work. If you are reimbursed for your travel expenses related to work, you can not claim a deduction on your tax return.

However, if your employer reports your reimbursement as wage income on your W-2 form, you are allowed to take these expenses as deductions.

secondly, commuter fee is your normal daily expenses incurred in conducting the work. Although these may seem like work-related expenses, expenses you incur to travel to work expenses are not traveling. Once you are at work, work-related travel expenses would be deductible.

Let's say you drive 50 miles to work each round trip for the day and pay $ 5 a day to park your car. These expenses are not directly related to your job description and therefore not deductible as moving expenses.

In sum, the expenses incurred to get home to work and work at home are not deductible as work-related expenses.

once you arrive at work, transportation expenses you incur during a working day can be deducted as travel costs if they are related to work.

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