Ask An Accountant-Deducting Mileage For Delivery Drivers

It’s tax time! My “Ask An Accountant” series should help with many questions that may arise. Remember, if you have a tax question, email my husband who is an experienced accountant at cjwtaxpro@gmail.com.

Question:  
I’ve got two sons, both deliver pizzas for Dominos.  Dominos gives the drivers around $1.85 per delivery. Most deliveries are at least 6 or 7 miles. If they document their mileage and their reimbursements, can they deduct the difference as unreimbursed business expenses?

 Answer: 


If the reimbursements are included in the W-2 as taxable wages then yes you may deduct 100% of the mileage on deliveries.  If the reimbursement is not included in taxable wages, then only the difference in the mileage deduction and the actual reimbursement may be deducted

Please keep in mind this post is for informational purposes only and answers given are very general. Do not rely on this column for definite tax answers as many things depend on individual circumstances. Please contact your personal accountant or financial advisor for your particular situation.

photo credit: austinpost.org

IRS Circular 230 Notice: Any U.S. tax advice in this written or electronic communication was not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions

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