Moving from and to the same workplace every day is not a deductible expense taxes, but use a personal vehicle for other work-related travel could be if the employee will not be reimbursed spending.
Examples of use of a vehicle in relation to the work include visiting clients and move to a place of temporary work instead of the main office of the employee or the place of business.
Employees who receive a partial reimbursement from their employers for business use of your personal vehicle can claim a tax deduction for the difference between the standard IRS mileage rate and the rate of reimbursement.
The miles are a miscellaneous itemized deduction on the return of taxes and, when added to all miscellaneous itemized deductions, only the amount that exceeds 2% of adjusted gross income of the taxpayer is deductible.
For fiscal year 2011, the standard mileage rate is 51 cents per mile for miles driven before July 1 and 55.5 cents per mile for miles recorded from July 1 onwards. These remain the fees for the 2012 fiscal year.
You need to keep track of any trip qualified keeping a record that includes the date of travel, business purpose and destiny. By using the standard mileage rate, the total business miles are multiplied by the rate per mile for determining the amount of the tax deduction.
Below rates per mile for other uses listed in 2011
• 14 cents per mile for charitable purposes, including volunteer opportunities (14 cents per mile for the 2012 fiscal year) .; • This is considered a deduction for donation to charity and should not exceed 2% of adjusted gross income to deduct.
For more information about how transport costs can reduce tax liability or meet other tax benefits, visit www.hrblock.com to find a local tax professional.
The signature H & R Block, Inc. has prepared more than 575 million tax returns worldwide since 1955, which makes the service provider of the nation’s largest tax.
In fiscal 2011, H & R Block had annual revenues of $ 3.800 billion and prepared more than 24.5 million tax returns worldwide, including Canada and Australia.
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