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]

@mr_lincoln 

yes. Exactly. 

So unless you have really big expenses like repairs and drive a lot like (truckers or taxi) it makes sense to itemize.

turbotax has some explanation here https://turbotax.intuit.com/tax-tips/self-employment-taxes/standard-mileage-vs-actual-expenses-getti...

[mr_lincoln]

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@partfinds wrote:

@mr_lincoln 

yes. Exactly. 

So unless you have really big expenses like repairs and drive a lot like (truckers or taxi) it makes sense to itemize.

turbotax has some explanation here https://turbotax.intuit.com/tax-tips/self-employment-taxes/standard-mileage-vs-actual-expenses-getti...

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LOL @partfinds   trust me when I say driving a lot is not limited to truckers!!!  I have several places I pick inventory up that are between 175 and 200 miles round trip ... then there is the almost daily 4-6 mile round trip to the post office for shipping ... the mileage can and does add up in a hurry. 

[partfinds]

Tolls and car lease (when your iwn car is in repair) is in addition to the standard deduction.

[pburn]

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@partfinds wrote:

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.

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It appears from your post that there is still a misunderstanding about this topic.

I think part of the confusion may be the word "standard." There is no "standard deduction." There is, however, an expense formula entitled "standard mileage rate."

Taxpayers to whom this applies can choose one of two methods to file for a mileage expense:

1. standard mileage rate formula is a flat rate x number of miles;
2. actual expenses method includes an itemization of all allowable expenses for the year.

There is no "standard deduction." Each taxpayer must compute their own specific deduction and report their expenses using whichever method computes to their advantage. 

In your specific case, using the "standard mileage rate" formula was best for you, and your deduction amount was $9,851, based on the miles you entered into TurboTax. My deduction amount using the "standard mileage rate" would be different, based on how many miles I recorded for the year. I don't get to just plug in $9,851.

I think you're conflating the two approaches to the computation of your expenses. It appears to me as though you're trying to take the standard mileage rate AND itemize your car expenses.

I'd check with someone other than your online TurboTax program if I were you . . .

[pburn]

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@partfinds wrote:

So unless you have really big expenses like repairs and drive a lot like (truckers or taxi) it makes sense to itemize.

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No, I believe the opposite is true. 

If you have really big expenses, you do want to itemize and use the actual expenses method.

If you don't have really big expenses, you'll want to use the standard mileage rate.

[partfinds]

„I think you're conflating the two approaches to the computation of your expenses. It appears to me as though you're trying to take the standard mileage rate AND itemize your car expenses.„

explain. You think that Turbotax is mistaken? You think turbotax is new company and has no accountants? 
i don’t make up turbotax process . I follow the process. 

[partfinds]

„If you have really big expenses, you do want to itemize and use the actual expenses method.

If you don't have really big expenses, you'll want to use the standard mileage rate.„

i though I said it. if you misunderstood … this is what I meant

[pburn]

Not to put too fine a point on it, you said:

"So unless you have really big expenses like repairs and drive a lot like (truckers or taxi) it makes sense to itemize.

The opposite is true. A true statement would be:

"So unless if you have really big expenses like repairs and drive a lot like (truckers or taxi) it makes sense to itemize."

[partfinds]

Sorry for my grammar. Hopefully others understood me correctly despite my grammar.

[pburn]

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@partfinds wrote:

• „I think you're conflating the two approaches to the computation of your expenses. It appears to me as though you're trying to take the standard mileage rate AND itemize your car expenses.„
•  
• explain. You think that Turbotax is mistaken? You think turbotax is new company and has no accountants? 
  

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Explanation, as requested:

It just appears from the comments you've posted that you're using both the standard mileage rate method and the actual expenses method.

 From the IRS instructions for Form 1040/Schedule C (summarized):

You can deduct the actual expenses of operating your car or truck OR take the standard mileage rate.

Using the standard mileage rate formula includes:

• a flat amount for each mile x the number of miles used only for your eBay selling business;
• parking fees; and,
• tolls.

Do not deduct:

• depreciation;
• rent or lease payments; or
• actual operating expenses.

If you deduct actual expenses, include:

• gasoline;
• oil;
• repairs;
• insurance;
• license plates, etc.
• depreciation;
• rent or lease payments.

Just one example--you've stated in this thread:

"Tolls and car lease (when your iwn car is in repair) is in addition to the standard deduction."

• According to TurboTax, which is the software you're relying on, costs for renting a car when yours is in the shop is available only when you use the actual expenses method and itemize your costs. It is not an available expense when using the standard mileage rate method.

See: Rental car expense for business 

"When you choose to enter Actual Vehicle Expenses instead of the Standard Mileage Deduction method, you will be guided through entering all of your expenses in the following pages. Enter repair costs on the page pictured in the 3rd screenshot I have attached below."

[partfinds]

Not really @pburn  see screenshots for turbotax explanation I rely on. Tolls are listed on both standard and actual and are in addirion. Transportation to work is money you spend on car lease when it is being repaired and it is in addition to standard 

„Tolls and car lease (when your iwn car is in repair) is in addition to the standard deduction."

• According to TurboTax, which is the software you're relying on, costs for renting a car when yours is in the shop is available only when you use the actual expenses method and itemize your costs. It is not an available expense when using the standard mileage rate method.

See: Rental car expense for business 

"When you choose to enter Actual Vehicle Expenses instead of the Standard Mileage Deduction method, you will be guided through entering all of your expenses in the following pages. Enter repair costs on the page pictured in the 3rd screenshot I have attached below."

I ALSO WANT TO ADD TO THIS @PBURN CLARIFICATION THAT EVERYONE IS FREE WHICHEVER THEY WANT emthod and tax software they please.  I WANTED TO JUST SHOW A WAY TO LOWER YOUR TAX LIABILITY WHICH WORKED FOR ME FOR YEARS. Hope that was helpful to some.

[pburn]

@partfinds 

Okay. Thanks for your reply. I'm apparently not making myself clear, because it still appears as though you're trying to use both methods to report your car/vehicle expenses.

I'm out of this discussion, so there's no need to reply or @ mention me further.

Thanks for your cooperation! 😊  Have a great one!

[partfinds]

No it is impossible to do both methods in turbotax. It is simple you give them numbers (like in screenshots) and they suggest what is best. They can suggest that it is better to go with standard (they ask question) and you can decline and go with actual anyway. The process is guided and straighforward. 

i am not recommending Turbotax . I use it and it works for me. At this time I regret participating in this thread after all. I thought it may be helpful.

[partfinds]

@mr_lincoln 

maybe what I wrote should be deleted not to confuse anyone. What is confusing so I can report it to mod?

[mega-ma-roo]

I don't believe this has been mentioned in this thread and I apologize if I missed it, but folks should be aware of this:

Topic No. 510 Business Use of Car | Internal Revenue Service (irs.gov)

To use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Then, in later years, you can choose to use the standard mileage rate or actual expenses.