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Unreimbursed mileage expense

sws20501
Level 1

Is there anything that can be done with unreimbursed mileage since the 2% deductions are gone on Sch A?

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IntuitJim
Employee
Employee

Suzann, generally no. The Tax Cuts and Jobs Act also suspends all miscellaneous itemized deductions that are subject to the 2% AGI, such as unreimbursed employee expenses & mileage, except in narrow situations.  

One planning option is to coach your taxpayer to approach their employer about creating an accountable plan to reimburse employee expenses, since the employer would still be eligible to deduct the expense as a business. Here is an article with more information about accountable plans:  https://proconnect.intuit.com/taxprocenter/tax-law-and-news/how-your-s-corporation-clients-can-use-a...

As Lisa points out, some States that do not Conform to the TCJA may still allow an Itemized Deduction, so be sure to input in the tax return and check.   Thanks for joining our Community!

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3 Comments 3
TAXOH
Level 11
Not on the tax return.
Just-Lisa-Now-
Level 15
Level 15

Some states still aloow the deducution, if your state is one of them, you still want to enter the information.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
IntuitJim
Employee
Employee

Suzann, generally no. The Tax Cuts and Jobs Act also suspends all miscellaneous itemized deductions that are subject to the 2% AGI, such as unreimbursed employee expenses & mileage, except in narrow situations.  

One planning option is to coach your taxpayer to approach their employer about creating an accountable plan to reimburse employee expenses, since the employer would still be eligible to deduct the expense as a business. Here is an article with more information about accountable plans:  https://proconnect.intuit.com/taxprocenter/tax-law-and-news/how-your-s-corporation-clients-can-use-a...

As Lisa points out, some States that do not Conform to the TCJA may still allow an Itemized Deduction, so be sure to input in the tax return and check.   Thanks for joining our Community!

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