Confused about mileage

[tuffbrk]

What is the name of your state (only U.S. law)? NJ - Federal Tax

Hi - I was trying desperately to understand Rev Proc 2010-51 on the IRS website while looking for information about claiming mileage. I became completely lost. In the hopes this is a "no-brainer" for the Seniors here -

In 2011 my employer terminated their receptionist. I was advised that I would need to make a few trips to the bank per month until the party was replaced. Sixteen months later, I'm still making a "few" trips a month to the bank. On average, 7 trips.

Above and beyond my concern about driving my car while performing a business function, I am curious if I can claim the mileage as an expense on my taxes?

Your thoughts would be most appreciated!

 

[tranquility]

While more facts are needed to know exactly, if you are not being reimbursed, yes. You take it on 2106ez to a Schedule A deduction. Depending on your financial facts, you may not have enough in deductions to take it rather than the standard deduction.

 

[tuffbrk]

While more facts are needed to know exactly, if you are not being reimbursed, yes. You take it on 2106ez to a Schedule A deduction. Depending on your financial facts, you may not have enough in deductions to take it rather than the standard deduction.

I'm not being reimbursed. In fact, I may be better off with the standard but I like to key in all of the data and then see which gives the better outcome. If I do elect to go itemized vs standard - how would I "prove" the mileage? So, for instance, every time that I make the trip for them, I scan all of the checks and the deposit slip so I know the dates I went for each month. Would that be sufficient if the IRS were to challenge it?

 

[LdiJ]

I'm not being reimbursed. In fact, I may be better off with the standard but I like to key in all of the data and then see which gives the better outcome. If I do elect to go itemized vs standard - how would I "prove" the mileage? So, for instance, every time that I make the trip for them, I scan all of the checks and the deposit slip so I know the dates I went for each month. Would that be sufficient if the IRS were to challenge it?

A mileage log would be better, and is the IRS's preferred documentation method. When you get in the car for business purposes you log in your beginning mileage and the reason for the trip, when you get out of the car you log your ending mileage.

 

[davew128]

I'm not being reimbursed. In fact, I may be better off with the standard but I like to key in all of the data and then see which gives the better outcome. If I do elect to go itemized vs standard - how would I "prove" the mileage? So, for instance, every time that I make the trip for them, I scan all of the checks and the deposit slip so I know the dates I went for each month. Would that be sufficient if the IRS were to challenge it?

You're worried about documenting 84 RTs a year? At say 2 miles each way, your total deduction is roughly $160 BEFORE limitations. Seriously? I think I have nits that need to be picked.

 

[tranquility]

The IRS LOVES "contemporaneous written records".

 

[tuffbrk]

It comes to a little over $500 annually using the 2012 mileage rate. Not noted in my original post is that I also take trips out of state to give presentations, deliver documentation in response to State issued Request For Proposals (RFP), and attend mandatory RFP conference meetings in order to participate in the bidding process. However, those trips are easy for me to document with bridge and toll receipts. I hadn't considered the bank trips in my calculations and want to be certain to do so when filing for 2012 if it was possible.

Thanks to all who responded and shared their thoughts and expertise. And, (as always LdiJ!) I greatly appreciate all of you taking the time to respond.

Wishing you all a happy day.