Tax Deduction for Mileage driven for 2022

[mr_lincoln]

Just an FYI for those using a mileage deduction on your tax return for 2022.

The IRS allows the following mileage deduction for using a personal vehicle for business purposes:

January 1 through June 30, 2022 = 58.5 cents per mile

July 1 through December 31, 2022 = 62.5 cents per mile

[partfinds]

If you itemize when you have expensive car repairs. If not you take standard car deduction

[partfinds]

STANDARD mileage DEDUCTION IS $9851. 

[pburn]

@partfinds wrote:

STANDARD mileage DEDUCTION IS $9851. 

---

Can you post a link that we could take a look at for that standard mileage deduction figure? Thanks.

[ms.rodriguez*]

That can't be right.  My response is to li benz.

[partfinds]

@pburn  @ms.rodriguez* 

[mr_lincoln]

---

@partfinds wrote:

If you itemize when you have expensive car repairs. If not you take standard car deduction

---

@partfinds   What line item is that on the Schedule C form?  Is that standard car deduction published in the Schedule C instructions??? 

You posted: "STANDARD mileage DEDUCTION IS $9851. " 

That would equate to about 16840 miles @ 58.5 cents and about 15760 miles at 62.5 cents ... while that is not unrealistic I would like the reference if that's convenient for you to supply?

[pburn]

@partfinds 

I think you've misunderstood the exchange in that screenshot.

That's the dollar amount for the specific person asking the question, not for everyone who uses the standard mileage rate formula. I see you even blurred the amount that specific person would have received using the actual expenses method.

The standard mileage rate is a  formula based on a taxpayer's actual mileage. There is no minimum or maximum or average or standard deduction. A taxpayer can't just take deduction of $9,851 unless that's his/her actual result of the standard mileage rate formula.

[partfinds]

@mr_lincoln 

i really don’t know. Every year I use Turbotax self employed and they guide the process. as you see in screenshots - it is easy q&a. I don’t see the actual form till I submit that to IRS with turbotax. I can print the whole tax return afterwards and look but Ebay didn’t give me my 1099k yet.

[partfinds]

last year form

[pburn]

---

@ms.rodriguez* wrote:

That can't be right.  My response is to li benz.

---

It isn't. There's been a misunderstanding. 

The screenshots show how much that specific person can deduct using the standard mileage rate based on how many miles that specific person entered into the formula, not some kind of standard deduction for mileage everyone can use.

[partfinds]

I blurred out my actual expenses that were less than standard deduction. Actual expenses list - I posted includes mileage.  The total cumulative of that list needs to be put against the standard deduction. In my case it was better to go with standard deduction.

turbotax asks question about mileage and they calculate it. Yes it is right what you wrote about mileage but that doesn’t matter if you go with standard deduction and don’t itemize.

[partfinds]

„

That would equate to about 16840 miles @ 58.5 cents and about 15760 miles at 62.5 cents ... while that is not unrealistic I would like the reference if that's convenient for you to supply?”

car expenses @mr_lincoln . I posted list of what is in the car expenses (includes mileage). You need to see what is bigger your itemized list or standard deduction. Itngoes on schedule c (expenses- car )

[partfinds]

Mileage calc in turbotax that is part of car expenses later on schedule c. 

[mr_lincoln]

---

@partfinds wrote:

@mr_lincoln 

i really don’t know. Every year I use Turbotax self employed and they guide the process. as you see in screenshots - it is easy q&a. I don’t see the actual form till I submit that to IRS with turbotax. I can print the whole tax return afterwards and look but Ebay didn’t give me my 1099k yet.

---

Okay @partfinds  thank you for that info ... Turbotax has to comply with the IRS procedures, definitions and explanations of the various deductions offered on their Schedule C (1040) form.  Now I understand but @pburn is correct that your dollar amount will not apply to everyone, only you based on your expenses.  And to compliment @ms.rodriguez* 's post below is an excerpt from the Schedule C instructions for Line item 9 that they point out.  So in basic terms a tax payer chooses EITHER the Expense approach like you or takes the mileage allowance that I posted about.  BUT, if the vehicle is actually owned by the business then ONLY the Expenses can be deducted and there is no option for using the mileage allowance.

I know this because I Leased a vehicle for my business for three years and then when the lease ran out I let the company purchase it ... then I ran the vehicle (company owned) until its value as a depreciating asset of the corporation dropped to where I was better off using a personal vehicle and taking a mileage deduction ... so I bought the vehicle from the company (yes my own company) ... and got a REALLY good deal on it LOL!  All legal of course and  simply took the mileage deduction from that point forward.