Tax Strategy Question

Mar 13, 2016

  1. BillyC
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    BillyC Expert

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    Very simple question I have for you fellow agents who have been filing taxes for years now. So this is new to me, but I'm sure this will be an easy question for you.

    Scenario:

    I made $10,000 of taxable income last year.
    I drove 18,000 miles
    I can write off $0.57/mi on taxes. (correct?)

    Question:
    I don't owe any money on taxes right?
     
    BillyC, Mar 13, 2016
    #1
  2. axeman462
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    axeman462 Guru

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    Put the numbers into taxact.com and pay whatever the site tells you to pay.
     
  3. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    DHK, Mar 14, 2016
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  4. Norwayguy
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    Norwayguy I have spent way too much time here.

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    Please tell me things are improving.
     
  5. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    If those 18k miles were all for work you can write them off. If only part of them were for work you can only write off that part. I highly doubt that you drove 18k miles for work while only making $10k. I think the IRS would doubt that too if ever audited.

    Everyone also gets at least a $6k deduction. So technically you only have $4k of taxable income at most. For only $10k in income, I couldnt imagine that legitimate write offs would be more than the standard deduction.
     
    scagnt83, Mar 14, 2016
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  6. Mash
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    Mash Expert

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    If you are an "Independent Contractor" file the mileage on schedule "C"
    with your taxes.

    If you are a W-2 actual employee. . . .file the mileage with form 2106
    with your taxes.
    You should have other deductions as well. Cell phone. . . postage. ..etc.

    And no. . . .in my humble opinion. . . no taxes are due.
    Especially with the other normal deductions.

    I hope that this $10,000 is something in addition to a full time income elsewhere.
     
    Mash, Mar 14, 2016
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  7. sman
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    sman Guru

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    sman, Mar 14, 2016
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