Vehicle expenses

Taxtime
Taxtime Member Posts: 1 Newcomer
in Filing my taxes

I am entering vehicular expenses for self employment income and am wondering why does the freetaxusa software require that I entire average daily commute miles?


It also asks for total miles, total business miles and total commute miles. Can someone explain how the average daily commute miles factors into the vehicle expense? To my understanding, all of the vehicular deductions can be calculated based on total miles, total business miles and total commute miles so I’m not sure why average daily commute miles needs to be entered as well.

Answers

  • CoryF
    CoryF FreeTaxUSA Agent Posts: 198

    Hello, Taxtime.

    Thank you for this observation. The Average daily commute miles box is added as an option as this is part of the Schedule C created by the IRS. An entry to that box is not required by FreeTaxUSA if you don't have an entry. The IRS requires certain fields be included into the calculation of your business use percentage. The Commuting miles is listed and included into the business use percentage and can be seen in the Form 4562 Part V Line 31. Please answer the Vehicle miles fields accurately according to your small business purposes on your Schedule C.

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