From:  Don
Date:  09 Jan 2009

I am a field technician (not self-employed) and my company will soon reimburse me for 15¢ per mile while driving my personal vehicle for company business. I plan on driving approximately 20,000 miles in 2009. They are paying for all the fuel that I put into my vehicle for business use.

Can I itemize the difference between 55¢ (government rate) and 15¢ for every mile driven? If so, are there minimum requirements or limitations?

Thank you...
Don

Answer

Date:  4 Feb 2009

Hello Don,

You can claim an employee business expense deduction on Form 2106 for the unreimbursed expense.

Remember that commuting expenses are not qualified business expenses. See the IRS publication 463 on Travel, Entertainment, Gift and Car Expenses.

Employee Business Expenses are Miscellaneous Itemized Deductions claimed on Schedule A. Miscellaneous Itemized Deductions are reduced by 2% of Adjusted Gross Income, and are not deductible on the Alternative Minimum Tax Form 6251.

Good luck!

Mike Gray

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