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What are the advantages of being paid mileage versus claiming mileage on my taxes?

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  • What are the advantages of being paid mileage versus claiming mileage on my taxes?


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Answer #1 | 19/12 2013 15:13
you stated 'double dipping' if that isn't clear enough I don't know another way to describe it an accountable plan would only apply to your employer, if you are in business for yourself and you make it clear to the customer and put it on your invoice you are charging for mileage, it is included in income to you and can be claimed as an expense
Answer #2 | 19/12 2013 15:50
If they reimburse you for mileage, you get the full amount. Deducting it, you don't pay tax on that much of your income - your tax savings is only a small % of the total.
Answer #3 | 19/12 2013 20:52
You get a lot more money by being paid mileage. If you charge the client, then they pay roughly $1 for every 2 miles. If you claim it on your taxes, then it lowers your taxable income (not your tax), by roughly that amount, which means, if you're lucky, your tax might drop by 1/3 to 1/2 of that amount.

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