Can I deduct unreimbursed mileage in 2020?

August, 27 2020 by Richard L. Manies, MBA, EA, CTRS
Man driving for work

For individual taxpayers, the cost of driving your car or truck for work is no longer an allowable deduction for tax years 2018 through 2025 under the Tax Cuts and Jobs Act. If driving is a requirement of your job, I suggest that you speak with your employer to work out a plan that will reimburse you for the expenses you incur when you drive your car or truck for work-related purposes.

If you are a member of the Armed Forces on active duty (not reserves) and you are moving because you were ordered to move to a permanent change of station, if you are a state or local government official paid on a fee basis, or if you qualify as a ”certain performing artist” as defined by the IRS, you are allowed to deduct mileage as an adjustment to income if you were not reimbursed.

Keep in mind that this rule does not apply to self-employed taxpayers. Independent contractors are still allowed to claim expenses for business-related mileage that is not reimbursed by their clients.

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Richard L. Manies, MBA, EA, CTRS

Richard L. Manies, MBA, EA, CTRS
Tax Professional

 
Richard Manies is an enrolled agent and a Certified Tax Resolution Specialist. In his current role, he represents taxpayers in federal and state tax audits and assists the Learning and Development Department in presenting IRS approved continuing education seminars.
 
Previously, Richard operated his own tax practice specializing in tax returns for individuals, S-Corporations, estates, and tax-exempt organizations. He was also a multi-store manager for H&R Block and enjoyed a 35-year career in the building products industry.
 
Since joining TaxAudit in 2015, Richard has successfully defended more than 2,000 taxpayers. He is a member of the American Society for Tax Problem Solvers (ASTPS).
 

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