Allowable Mileage Tax Deduction for 2011, 2012

You are currently able to deduct expenses related to cost of your car for business purposes. If you would like to explore tax deductions for vehicles or miles driven, there are many reasons why you could qualify to claim a tax deduction for mileage driven.

Did you know you can claim miles driven for medical purposes? How about claiming miles for charitable purposes?

There are Two Different Ways to Deduct Vehicle Expenses:

• Standard Mileage - If you chose to use this method, then you will take the standard mileage deduction amount allowed by the IRS and multiply it by the amount of miles you drove for business related purposes.
• Actual Vehicle Expenses - If you chose this method, then you will need to keep track of all costs related to business travel. You will be able to deduct: Depreciation, licenses, gas, oil, tools, lease payments, insurance, garage rent, parking fees, registration fees, repairs, and tires.

You need to keep excellent record no matter what method you use. The IRS does not consider travel from home to work as work related. You must be able to provide dates of travel along with the reason for the travel and either amount spent on gas or miles driven. You may want to try and calculate your tax deduction using both methods and see which one allows you a larger vehicle tax deduction. If your company owns your vehicle, then you may not deduct any related expenses to that vehicle.

There are many tax deductions available for tax payers. Above are just a few of them. To learn how to claim more tax deductions and get a bigger refund, please visit TurboTax Online. TurboTax Online offers free tax software to help you maximize your mileage reimbursement tax deductions.