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» From: Somewhere In The World Dear TaxMama, My job requires that I drive from place to place and use my personal vehicle. The company that I work for gives me a car allowance of $300. I have paid taxes as other income and wonder if there is any way to deduct expenses on my vehicle? The amount of money my employer gives me is supposed to cover gasoline, increased insurance coverage, repairs, etc. but of course it does not. Please let me know if I can deduct some of this. Thanks, Earl Dear Earl, Well, we all know that our employers never really pay for the wear and tear on our cars. Especially when you really do a lot of driving. Where is the compensation for the warranty that expires - and now we have to pay for all the maintenance and repairs out of pocket? But we can't fix that here ... so, on to tax issues. You can itemize your auto expenses on Form 2106 If you read the information in Publication 463, you might find other expenses you can deduct... like a briefcase, cell-phone, PDA, calculator, etc. Just remember to include the reimbursement on the Form 2106 - and you won't need to include it on page 1 as other income. Best wishes Eva Rosenberg Your TaxMama  |
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