Deducting mileage for your commute is not allowed by the IRS unless you know a few commuting mileage tax deduction tricks. The IRS mileage allowance can include virtually all your commuting mileage expense, allowing you to take a mileage tax deduction for the miles you log from your home to the office or other place of business, if you meet the following two criteria: You are a small business owner or self-employed person, and you have two offices or work locations: one outside the home and one inside the home.
Tax Deductions for Mileage
Your daily round-trip commute is now a business mileage tax deduction, due to a IRS mileage reimbursement loophole that says: Any miles driven between two business locations qualify as a business mileage tax deduction. Thus, Your round-trip “commute” is 20 miles per day: 20 miles X 5 days = 100 miles per week, 100 miles per week X 50 weeks = 5,000 miles per year, 5,000 business miles X .36 cents = $1,800 mileage deduction.
Now you have a nice $1,800 mileage deduction – a mileage deduction that you’ve probably been entitled to for years but didn’t even know it. $1,800 mileage deduction X 32% income tax rate = $576 in actual tax savings (27% federal income tax + 5% state income tax). This is Five-hundred and seventy-six bucks: Savings every year.
For more details, check out this article on deducting your commuting mileage.