Tax Deduction Mileage: Claim the tax deduction mileage or take the standard deduction

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Tax Deduction Mileage: Claim the tax deduction mileage or take the standard deduction -

Mileage Tax Deduction -  TaxACT

If you claim a deduction tax mileage or would you enjoy more? ? take standard deductions

you wonder if you can even deduct travel expenses related to your job

you can deduct certain ordinary and necessary transportation costs ?; however, the miles you drive to work and are generally not deductible.

There are special cases where they may be deductible.

transport Examples deductible

The following example is an instance when you can deduct transportation costs depending on the location of your work and your home:

example you work regularly in an office in the city where you live. Your employer sends you to a training session of one week to another office in the same city. You travel directly from your home to the location of training and back every day. You can deduct the cost of your daily roundtrip transportation between your home and the place of training.

To then claim these expenses, you will need to do a little organization and planning of your deductions to see if the claim these expenses would be beneficial to your tax situation.

evaluate your itemized deductions

you must determine if you have enough itemized deductions to exceed the standard deduction for your filing status.

itemized deductions can include:

  • medical and dental expenses (over 7.5% of your adjusted gross income)
  • State and local income taxes
  • Home mortgage interest, insurance premiums loan qualified mortgage and real estate taxes
  • charitable contributions
  • not reimbursed for employees, tax preparation fees and other deductions (over 2% your gross income)

the amounts for 2012 are adjusted standard deduction:

  • simple and separate Married filing - $ 5.950
  • Head of household - $ 8,700
  • Married joint deposit and Widow qualification (er) - $ 11.00

your itemized deductions exceed the standard deduction

If you determine your itemized deductions shall not exceed the standard deduction , and then claim these expenses will not benefit from your tax situation.

on the other hand, if you determine your itemized deductions may exceed the standard deduction , then you'll want to keep track of expenses incurred with your travels.

How can we deduce?

expenses of outstanding employees are subject to a 2% limit also applies to certain other deductions.

the deductible amount is the total of these miscellaneous deductions is more than 2% of adjusted gross income on the return.

documentation required to claim the unpaid labor costs

Finally, keep in mind that if you assess that you may be able to deduct these expenses, there are some documents you must keep your tax records to justify your requests (Note: This information need not be subject to return)

adequate records for mileage should contain the date on which you start to use the vehicle, the date of the expense, the mileage for each use, total. miles for the year, your business destination, and purpose of the expense.

do you think you might be able to claim your mileage for training, or will you benefit from taking the standard deduction?

photo credit: PhotoDu.de / CreativeDomainPhotography.com via photopin cc

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