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Mileage deduction when the car was needed in order to do the job

 

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Subject Author Date
Mileage deduction when the car was needed in order to do the job OldKnitter 02-21-2007
Posted by OldKnitter on February 21, 2007, 6:28 pm
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This is my son's situation, but I've offered to see what I
can dig up.

He worked as an independent contractor for about two months,
early in 2006. The entire job consisted of methodically
driving up and down streets, checking the strength of
wireless signals. The company provided him a GPS-like
device for recording this information.

The company issued a 1099 for the hours he worked, but he
had to pay all of his own vehicle expenses.

Where/how can mileage be deducted on his income tax return?
What IRS publication covers this?

Most of his 2006 income came from a "traditional" job for
which he received a W-2.

Can this mileage be taken by filing any kind of return other
than the standard 1040?

I haven't had any luck so far researching this on my own, so
I will be appreciative of some help.

Thanks!

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Posted by Paul Thomas, CPA on February 22, 2007, 2:08 am
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> This is my son's situation, but I've offered to see what I
> can dig up.
>
> He worked as an independent contractor for about two months,
> early in 2006. The entire job consisted of methodically
> driving up and down streets, checking the strength of
> wireless signals. The company provided him a GPS-like
> device for recording this information.
>
> The company issued a 1099 for the hours he worked, but he
> had to pay all of his own vehicle expenses.
>
> Where/how can mileage be deducted on his income tax return?
> What IRS publication covers this?
>
> Most of his 2006 income came from a "traditional" job for
> which he received a W-2.
>
> Can this mileage be taken by filing any kind of return other
> than the standard 1040?
>
> I haven't had any luck so far researching this on my own, so
> I will be appreciative of some help.

He's considered self-employer. Use Schedule C to deduct his
"business" miles and other expenses.

You'll need to use the "long" 1040 form for that schedule.

--
Paul Thomas, CPA
paulthomascpapc@bellsouth.net

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Bill Brown on February 22, 2007, 2:08 am
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> This is my son's situation, but I've offered to see what I
> can dig up.
>
> He worked as an independent contractor for about two months,
> early in 2006. The entire job consisted of methodically
> driving up and down streets, checking the strength of
> wireless signals. The company provided him a GPS-like
> device for recording this information.
>
> The company issued a 1099 for the hours he worked, but he
> had to pay all of his own vehicle expenses.
>
> Where/how can mileage be deducted on his income tax return?
> What IRS publication covers this?
>
> Most of his 2006 income came from a "traditional" job for
> which he received a W-2.
>
> Can this mileage be taken by filing any kind of return other
> than the standard 1040?
>
> I haven't had any luck so far researching this on my own, so
> I will be appreciative of some help.


Schedule C and Schedule SE.
See http://www.irs.gov/businesses/small/index.html
for information on small business taxation.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by A.G. Kalman on February 22, 2007, 5:26 pm
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OldKnitter wrote:

> This is my son's situation, but I've offered to see what I
> can dig up.
>
> He worked as an independent contractor for about two months,
> early in 2006. The entire job consisted of methodically
> driving up and down streets, checking the strength of
> wireless signals. The company provided him a GPS-like
> device for recording this information.
>
> The company issued a 1099 for the hours he worked, but he
> had to pay all of his own vehicle expenses.
>
> Where/how can mileage be deducted on his income tax return?
> What IRS publication covers this?
>
> Most of his 2006 income came from a "traditional" job for
> which he received a W-2.
>
> Can this mileage be taken by filing any kind of return other
> than the standard 1040?
>
> I haven't had any luck so far researching this on my own, so
> I will be appreciative of some help.

He reports his income from the 1099 on Schedule C-EZ. He can
deduct his business mileage on Schedule C-EZ. See IRS Pub
334 (Tax Guide for Small Business) starting on page 31.

--
Alan
http://taxtopics.net

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Benjamin Yazersky CPA on February 22, 2007, 5:26 pm
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> This is my son's situation, but I've offered to see what I
> can dig up.
>
> He worked as an independent contractor for about two months,
> early in 2006. The entire job consisted of methodically
> driving up and down streets, checking the strength of
> wireless signals. The company provided him a GPS-like
> device for recording this information.
>
> The company issued a 1099 for the hours he worked, but he
> had to pay all of his own vehicle expenses.
>
> Where/how can mileage be deducted on his income tax return?
> What IRS publication covers this?
>
> Most of his 2006 income came from a "traditional" job for
> which he received a W-2.
>
> Can this mileage be taken by filing any kind of return other
> than the standard 1040?
>
> I haven't had any luck so far researching this on my own, so
> I will be appreciative of some help.

file schedule C - thats where business income & expenses are
reported

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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