Skip to main content
February 20, 2025
Question

Car allowance

  • February 20, 2025
  • 1 reply
  • 0 views

I’m in sales, receive car allowance which is taxed. I get reimbursed for gas.  Can I deduct mileage and car repairs?

1 reply

February 20, 2025

It depends.  If you receive a 1099, as an independent contractor, then yes, but not both mileage and repairs, it would be either mileage or actual expenses. 

 

If you are a W-2 employee, then for federal, NO.  Depending on your state, you may be able to claim the deduction for state.  If so, again, it would either be mileage or actual expenses that you would claim. 

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"