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Phillip B, EA
Phillip B, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 704
Experience:  Practicing since 2004. Expert in 1040, small business, represent vs. IRS, & int'l tax mattters.
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hello, I receive a monthly vehicle from my company allowance

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hello,
I receive a monthly vehicle from my company allowance in which I pay the note, insurance, and repairs.
I claim the business mileage at the end of the year on my income taxes.
My company is now planning on paying $.30/ mile taxable income for any monthly mileage over 3000 miles. ($.40/mile 4000-4999 etc)
If I receive this reimbursement, can I still claim the total mileage at the end of the year on my income taxes?
If the money you receive for your vehicle allowance is included in your taxable income, you can deduct the vehicle mileage against that income. If the vehicle allowance is given before tax and is not included in your taxable wages, you can deduct the difference between the federal standard milage rate and your non taxable vehicle allowance (.555 a mile Federal rate - .30 a mile non-taxable vehicle allowance).

So, if your company is giving you a 30 cents a mile reimbursement and they are including that entire amount in your taxable wages, you can deduct all your miles at the Federal standard milage rate of 55.5 cents a mile.
Customer: replied 4 years ago.
Yes, My vehicle allowance is included in my taxable income.
Then yes, you will be able to deduct the entire Federal standard mileage rate on your income tax return.
I'm just following up with you to see how everything is going. Did my answer help? If so, please rate my performance to finish so that I may be paid. If there is anything else that you need, please let me know.

Phil
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