Keep a record of the total number of miles you drove your vehicle during the tax year and the percentages of your personal and business use.
Keep track of all of your commuting receipts and records for gas, oil, auto repairs, auto insurance, parking fees, tolls, airfare, hotels, car rentals, meals and entertainment. You will need them to complete your tax return and to show the IRS if you are audited.
Gather your receipts. Total your receipts for gas, oil, repairs and insurance.
Pick up IRS Forms 1040 and 2106 and Schedule A from your local IRS office or download them from the IRS website (see Resources below).
Fill out IRS Form 2106 (Employee Business Expenses). Figure your vehicle expenses on Part II, section B (Standard Mileage Rate) or C (Actual Expenses). You cannot deduct both.
Enter the total from line 22 or line 29 on Form 2106, Part 1, Step 1. Complete Steps 1, 2 and 3 of Part 1 to figure your other commuting expenses.
Enter the total from line 10 on IRS Schedule A, line 20. The total of your Miscellaneous Deductions will only be deductible if they exceed 2 percent of your adjusted gross income.
Complete Schedule A. Enter the total from Schedule A, line 28 on Form 1040, line 40.
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