Refund for miles driven?

BiggMaNN59

Active Expediter
Quick question. I drove as a contract driver for a courier company and drove 141000 miles in last year. Got .43/cpm. Using miles and per diem as write off. Income 61000.oo Does this amount get subtracted from .555/cpm given by irs and I would get some or all of differance in refund? 141000X.43/cpm is 60630.00 from 78255.00 is 17635.00 refund. Thanks.
 

zorry

Veteran Expediter
I was going to tell him he owed the $17,000.
Don't know how strong his heart is. :)
 

runrunner

Veteran Expediter
Quick question. I drove as a contract driver for a courier company and drove 141000 miles in last year. Got .43/cpm. Using miles and per diem as write off. Income 61000.oo Does this amount get subtracted from .555/cpm given by irs and I would get some or all of differance in refund? 141000X.43/cpm is 60630.00 from 78255.00 is 17635.00 refund. Thanks.

If you get a refund or owe or break even doesn't depend on just those numbers. It also depends on how much you paid in throughout the year.
 

BiggMaNN59

Active Expediter
I am not a dip stick, lol, but was told I would get this amount back. But I don't beleive it. My accountant said we would not pay in thru out yr and we would be in real good shape at end of yr. I don't have my 1099 yet so will have to wait and see.
 

runrunner

Veteran Expediter
I am not a dip stick, lol, but was told I would get this amount back. But I don't beleive it. My accountant said we would not pay in thru out yr and we would be in real good shape at end of yr. I don't have my 1099 yet so will have to wait and see.

If you did not pay self employment tax you will not be in very good shape,I suspect! Better get a new (better) accountant.
 
Last edited:

Fkatz

Veteran Expediter
Charter Member
HI ALL. Sorry, your in for a shock!!!!!!!!, #1 if your a courier, and do not go more that 500 miles round trip, and you do not qualify for the Per Diem at all, you are considered a local driver, and your home every night. The mileage deduction is no problem of receiving, but it is not a refund, it is a deduction on your SCH C line 9, and I would not advise taking more that 100,000 miles. Due to a definite audit possibility you would be looking at, if you use more that the amount allowed, if it is in a cargo van only/ pickup truck w/cap 0r box, or a Cargo/Van with a 12ft box.? no other vehicles are allowed. and they have to have a GVW of under 9,995 lbs. loaded. The other item in reference to mileage which of course you have to prove on a daily basis, you cannot use the yearly beginning and ending figures. It must be logged on a per Day trip basis. You must log your mileage in the following format: Date- Shipper -Receiver - Beginning- Ending mileage and must be continued for each pick up and delivery for the whole day, otherwise you will not be allowed the mileage deduction if audited. YOU CANNOT TAKE THE MILEAGE FROM YOUR HOME TO THE FREIGHT TERMINAL TO PICK UP YOUR TRIP OR YOUR RETURN HOME FROM DROPPING YOUR FREIGHT BILLS AT THE OFFICE. You are only allowed the per Diem deduction if you are out for more that 24 hours. meaning if you leave your home at 2PM on a Monday, entitled to 1/2 day and do not return home until Friday night at 9 PM, you get full days for Tues, Weds, Thurs, and 3/4 day for Friday, so you would be allowed 4.25 days away from home per diem that week. But you must take a hotel room, or sleep in your vehicle / Some sort of bedding must be fixed to the vehicle for the per diem to be allowed. A Sleeping bag, cot, or built in sleeper are allowed. If you come home every night the Per Diem is NOT ALLOWED Are you paid $.43 per mile by your courier, as a reimbursement, or are you figuring the per diem at that rate, the per diem is daily, not per mile. and its $59.00 per Day, at 80% the difference between $59.00 x80% comes to $47.20 per day and it is a reimbursement for your meals only. as a deduction on line 24 meals and entertainment, nothing else. Also on line 23 Travel is for your Motels hotels that you stay at when you over the road away from home. Also, the mileage rate is $ 56.5 per mile which is to be entered on either Auto Expense Worksheet or Form 4562 Part V. you must enter your business miles separately from your commuting or other miles that you drove on that form. and make the necessary check marks where stated. So lets take an example: 250 days away from home that you can prove at $59 per day = $14,750.00 x 80% =$11,800. This per diem amount will be calculated by the tax software and entered on line 24 The amount of mileage I would suggest to use is 98,679 miles at $56.5 per mile = $58,865 the auto expense sheet or form 4562 Part V just the business miles, you must also enter the other miles for reference on how you came up with the amount of mileage. in order for you to deduct the mileage that you are claiming it must be within reason as to the amount of your 1099 MISC that you it should not go over 20% of your gross. receive, Franklin Katz, RTRP, ATP, PA, PB

Frank's Tax & Business Service

315 E. King St.

Kings Mountain, NC28086

Local # 704-739-4039 Toll Free# 877-857-1040

E-Mail: [email protected])

Web: Kings Mountain, NC Accounting Firm | Home Page | Frank's Tax & Business Services

IRS Circular 230 Notice: Unless expressly stated otherwise inthis
transmission, any tax advice contained herein, forwarded with or attached to
this message was not and is not intended to be used, nor may it be relied
upon or used, by any taxpayer for the purpose of (1) the avoidance of any
tax-related penalties under the Internal Revenue Code or applicable state or
local tax law provisions, or (2) promoting, marketing or recommending to
another party any tax transaction or tax-related matters that may be
addressed herein.

 

usafk9

Veteran Expediter
I would advise taking the deduction for every mile driven, if you can prove them.

However, I am not a CPA nor an EA.

Sent from my DROID RAZR using EO Forums mobile app
 

BiggMaNN59

Active Expediter
HI ALL. Sorry, your in for a shock!!!!!!!!, #1 if your a courier, and do not go more that 500 miles round trip, and you do not qualify for the Per Diem at all, you are considered a local driver, and your home every night. The mileage deduction is no problem of receiving, but it is not a refund, it is a deduction on your SCH C line 9, and I would not advise taking more that 100,000 miles. Due to a definite audit possibility you would be looking at, if you use more that the amount allowed, if it is in a cargo van only/ pickup truck w/cap 0r box, or a Cargo/Van with a 12ft box.? no other vehicles are allowed. and they have to have a GVW of under 9,995 lbs. loaded. The other item in reference to mileage which of course you have to prove on a daily basis, you cannot use the yearly beginning and ending figures. It must be logged on a per Day trip basis. You must log your mileage in the following format: Date- Shipper -Receiver - Beginning- Ending mileage and must be continued for each pick up and delivery for the whole day, otherwise you will not be allowed the mileage deduction if audited. YOU CANNOT TAKE THE MILEAGE FROM YOUR HOME TO THE FREIGHT TERMINAL TO PICK UP YOUR TRIP OR YOUR RETURN HOME FROM DROPPING YOUR FREIGHT BILLS AT THE OFFICE. You are only allowed the per Diem deduction if you are out for more that 24 hours. meaning if you leave your home at 2PM on a Monday, entitled to 1/2 day and do not return home until Friday night at 9 PM, you get full days for Tues, Weds, Thurs, and 3/4 day for Friday, so you would be allowed 4.25 days away from home per diem that week. But you must take a hotel room, or sleep in your vehicle / Some sort of bedding must be fixed to the vehicle for the per diem to be allowed. A Sleeping bag, cot, or built in sleeper are allowed. If you come home every night the Per Diem is NOT ALLOWED Are you paid $.43 per mile by your courier, as a reimbursement, or are you figuring the per diem at that rate, the per diem is daily, not per mile. and its $59.00 per Day, at 80% the difference between $59.00 x80% comes to $47.20 per day and it is a reimbursement for your meals only. as a deduction on line 24 meals and entertainment, nothing else. Also on line 23 Travel is for your Motels hotels that you stay at when you over the road away from home. Also, the mileage rate is $ 56.5 per mile which is to be entered on either Auto Expense Worksheet or Form 4562 Part V. you must enter your business miles separately from your commuting or other miles that you drove on that form. and make the necessary check marks where stated. So lets take an example: 250 days away from home that you can prove at $59 per day = $14,750.00 x 80% =$11,800. This per diem amount will be calculated by the tax software and entered on line 24 The amount of mileage I would suggest to use is 98,679 miles at $56.5 per mile = $58,865 the auto expense sheet or form 4562 Part V just the business miles, you must also enter the other miles for reference on how you came up with the amount of mileage. in order for you to deduct the mileage that you are claiming it must be within reason as to the amount of your 1099 MISC that you it should not go over 20% of your gross. receive, Franklin Katz, RTRP, ATP, PA, PB

Frank's Tax & Business Service

315 E. King St.

Kings Mountain, NC28086

Local # 704-739-4039 Toll Free# 877-857-1040

E-Mail: [email protected])

Web: Kings Mountain, NC Accounting Firm | Home Page | Frank's Tax & Business Services

IRS Circular 230 Notice: Unless expressly stated otherwise inthis
transmission, any tax advice contained herein, forwarded with or attached to
this message was not and is not intended to be used, nor may it be relied
upon or used, by any taxpayer for the purpose of (1) the avoidance of any
tax-related penalties under the Internal Revenue Code or applicable state or
local tax law provisions, or (2) promoting, marketing or recommending to
another party any tax transaction or tax-related matters that may be
addressed herein.


I stayed in a travel trailer in a RV park Tuesday thru saturday night. Off Sun and Mon. Paid 500/mo lot rent /utilities. Picked up freight at point a and drove 118 miles to 1st stop, 100 miles to 2nd stop, 100 miles to last stop and back 226 miles. total 544miles. Same stops every day. listed all miles, stops, time etc. amount of all repairs and expenses and recepts pertaining to job. 544 miles day x 5 days x 52 weeks is 141440 miles total. My title was independent contractor. After I get 1099 to accountant will let u know what happens. Figures crossed. I was not betting on large refund but was just curious.
 

paullud

Veteran Expediter
I stayed in a travel trailer in a RV park Tuesday thru saturday night. Off Sun and Mon. Paid 500/mo lot rent /utilities. Picked up freight at point a and drove 118 miles to 1st stop, 100 miles to 2nd stop, 100 miles to last stop and back 226 miles. total 544miles. Same stops every day. listed all miles, stops, time etc. amount of all repairs and expenses and recepts pertaining to job. 544 miles day x 5 days x 52 weeks is 141440 miles total. My title was independent contractor. After I get 1099 to accountant will let u know what happens. Figures crossed. I was not betting on large refund but was just curious.

Well it sounds like you don't get the 226 miles back because you were going back to your residence. As an independent contractor you have paid no taxes in so you wouldn't get a refund unless you have kids and get welfare. I'm not sure you would get to write off the lot rent and utilities so if I were you I would get more than one accountant's opinion. If you are going to use the mileage deduction you don't get to write off parts, fuel, or repairs. You have to pay your own social security which will be roughly 15% of any income shown. If you are zeroing out your income keep in mind it means you will have no social security and if you do it for 3 years then expediting will be classified as your hobby instead of a job which could really screw you over. This hasn't been a major issue in the past but get ready for that to change as the IRS is going to be chasing revenue down and making examples of people.

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Fkatz

Veteran Expediter
Charter Member
I stayed in a travel trailer in a RV park Tuesday thru saturday night. Off Sun and Mon. Paid 500/mo lot rent /utilities. Picked up freight at point a and drove 118 miles to 1st stop, 100 miles to 2nd stop, 100 miles to last stop and back 226 miles. total 544miles. Same stops every day. listed all miles, stops, time etc. amount of all repairs and expenses and recepts pertaining to job. 544 miles day x 5 days x 52 weeks is 141440 miles total. My title was independent contractor. After I get 1099 to accountant will let u know what happens. Figures crossed. I was not betting on large refund but was just curious.
According to what you are saying you are home every night, and you travel miles per day, which is considered local and not available for the Per Diem Deduction for reimbursement for Meals at all. . Since this is a Daily route you go from your home directly to Pickup Point A, or do you go somewhere to get your paperwork at a terminal/Office, and then make your pickup for your deliveries to 3 different stops. totaling 318 miles, and then drive back home 226 miles. What happens to the Signed Bill of ladings that you have and what do you do to prove to your company that you made the deliveries ? On your way back do you stop at a office/Terminal with a drop box, or something like that. My Question beside the above is may I ask what company your with, and what type of vehicle you are using. If you are using a Cargo Van, then the mileage is acceptable every year, and it must be under 10,000 lbs. GVW, If you are using a vehicle over that, you must and only can use the Actual expenses. insurance, repairs, maintenance, tires, interest on truck. and Straight line Depreciation of the vehicle over 5 years if it is between 10,000 & 26, 000 lbs GVW, Over 26,000 its 3 years Straight line depreciation But my Advice to you is do not use over 100,000 miles, even though you can prove more, but you are looking for an IRS Audit. ITs either/or not both. Do you have any Personal miles included, those miles are not deductible. and have to be listed on the return to show so. they are deducted from the total miles you actually drove, Is this vehicle only used as a business vehicle, if so no problem, if it is use for your personal use, then that mileage is not allowed. if your accountant does not explain to you how and why, I would go somewhere else Here is an example of what you would have. 1099 Income $126565 Mileage 141440 x56.5 cents per mile = $ 79,913 Your Net income $ 46,652.00 minus any other expenses, your Cell Phone, office supplies, pads, pens, printer ink, etc., truck supplies, load locks, blankets, etc., any hotels you stay in while on road only, then the Per diem is allowed only for those days. So lets say after all expenses your actual net income is $41,236. This is going to be a problem and federal tax and Self Employment tax will have to be paid. as follows. if you are single, you will be in the 25% Tax bracket, so $41.236 X 25% is $10,309 Federal Owed, Plus $ 41,236 X 12.35 SE percentage of income is 10,420 = $30816 net Self employment income, x 15.3% Self employment Tax is $4,715 So the total tax that you would owe is $15,135.00 Which is payable on April 15th, THIS IS ONLY AN EXAMPLE OF WHAT YOU COULD OWE. Franklin Katz, RTRP, ATP, PA, PB
Frank's Tax & Business Service
315 E. King St.
Kings Mountain, NC28086
Local # 704-739-4039 Toll Free# 877-857-1040
E-Mail: [email protected])
Web: Kings Mountain, NC Accounting Firm | Home Page | Frank's Tax & Business Services

IRS Circular 230 Notice: Unless expressly stated otherwise inthis
transmission, any tax advice contained herein, forwarded with or attached to this message was not and is not intended to be used, nor may it be relied upon or used, by any taxpayer for the purpose of (1) the avoidance of any tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions, or (2) promoting, marketing or recommending to another party any tax transaction or tax-related matters that may be addressed herein.

 

BiggMaNN59

Active Expediter
Been awhile since I last posted on my tax deal. Between my courier position and wifes income we grossed 105,000+/-. We got a refund of 266.00 from state and 350.00 from federal. Guess we were lucky. Won't chance that again. I have done some of same work as a sub contractor for friend of mine and he pays me cash and no paper trail for 200 miles a day. and only 5 hrs. He pays me 80/day and I get 55/day cash clear. Just something to do. Now that has ended and buying stuff at estate sales and reselling and makeing about same a month. Thanks for all feedback.
 

Fkatz

Veteran Expediter
Charter Member
You are now self employed basically as a Consignment Shop, better check out if your state requires your to charge Sales tax. Basically every state has sales tax, including Texas, Ten, Fl.so better check I out.

frank
 
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