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Employee mileage reimbursement  

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(@barbara-3)
Joined: 12 months ago
Posts: 2
28/08/2020 2:45 pm  

If a company reimburses an employee for mileage for using the personal vehicle, are the commuting miles (home to jobsite, jobsite to home) deductible on the company's tax return? 


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(@casey-4)
Joined: 12 months ago
Posts: 126
28/08/2020 3:37 pm  

I don't do federal taxes, so I can't answer that for sure.  But, Those miles from home to job site/job site to home are commuting miles.... why would a company reimburse for them?  just curious.


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(@barbara-3)
Joined: 12 months ago
Posts: 2
28/08/2020 4:09 pm  

@casey-4

I know they are commuting miles.  Some companies might reimburse as a perk and I guess that kind of answers my question.  


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 Dennis+Fazio
(@Dennis Fazio)
Joined: 3 months ago
Posts: 3
28/08/2020 5:09 pm  

Commuting miles aren't deductible for individuals unless you go to an alternate location, or travel from one work location to another. I suspect they are also not deductible as a business expense for businesses who reimburse their employees as a special bonus. Here's some detail from the Houston Chronicle:   https://work.chron.com/commuting-miles-vs-business-miles-31237.html


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 Magdalena Pribilovics
(@Magdalena Pribilovics)
Joined: 3 weeks ago
Posts: 1
28/08/2020 7:08 pm  

Since mileage reimbursement is an expense for the employer, it would be deductible on

the company's tax return. The employer should keep mileage requests on file.

I usually review with CPA end of year as well.

 


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 Lorin+Browning
(@Lorin Browning)
Joined: 1 month ago
Posts: 8
29/08/2020 12:33 pm  

See https://www.irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2020

 

It is the employee that is commuting and not the company.   

The employee cannot reduce the part of the reimbursement attributable to commuting on his or her tax return.    Also, the employee cannot claim a deduction for reimbursements in excess of the standard rate and the employee needs to be able to document mileage with written contemporary records.

The employer can pay reimburse what it wants so long as there is a reasonable business documented expense and the company's reimbursement policy is non-discriminatory.


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