This column is brought to us by Sharon from Mom on a Dealz. Madame Deals Inc. uses her husband as our business and personal accountant and gives him 5 stars. He is available for questions and was a pleasure to work with!
As we all know, it’s that dreaded time of the year-Tax time! In honor of tax season, I have a new series called “Ask An Accountant”. Send in your tax questions and each week to email@example.com and I will post the question and give an answer from an experienced accountant.
I am a social worker and my job requires my personal car and cell phone for work use. I track my mileage and keep all gas receipts; can I claim my car (gas and maintenancen) and my cell phone on my taxes?
This question is best divided into 2 separate questions so I will answer it like this:
1. Can I deduct car/auto expenses if I am required to use my personal auto for business.
2. Can I deduct the use of a cellphone used for work.
The mileage method requires a log of business mileage but keep in mind commuting mileage (from your home to regular place of business/office) cannot be used, but from the workplace to a secondary workplace or client can be deducted. The mileage rate for 2010 is 50 cents per mile. These expenses are reported on Form 2106 and will be deducted an Schedule A of your tax return.
I recommend keeping a log for business vs. personal mileage in both situations above.
*Please keep in mind this post is for informational purposes only and answers given are very general. Many things depend on individual circumstances. Please contact your personal accountant or financial advisor for your particular situation.