Trump's Tax Bill is costing my boss around $100,000 more in taxes this year
Well not really taxes but out of pocket expenses to reimburse employees for mileage that we used to get back on our taxes.
He recently found out his employees can't write off their mileage when driving for the company and he is furious! His employees who often drive as much as 40,000 miles a year can't write their miles off now. He has always covered gas, oil changes and any work the vehicles needed but we wrote the miles off ourselves to cover the wear and devaluation. So he is going to have to pick up the tab for that now for around 45 employees. Probably about $100,000 or more out of his pocket. HE IS PISSED!
Snip: Employees Get No Deduction for Work-Related Mileage
Before 2018, employees who incurred out-of-pocket expenses to perform their jobs could claim a deduction as long as expenses were not reimbursed by their employer. This was a miscellaneous itemized deduction, meaning it could be claimed only by taxpayers who chose to itemize. Also, such expenses were deductible only if, and to the extent, they exceeded 2% of the employee’s adjusted gross income. By far the most common unreimbursed employee expense was job-related mileage (not including personal commuting). Other deductible unreimbursed expenses included long-distance travel expenses, continuing education expenses required for present employment, job search expenses for the same occupation, work-related dues and subscriptions, depreciation on a home computer used for work, and home offices used for the convenience of the employer. In 2015, 14.6 million taxpayers claimed this deduction, for a total of more than $96 billion.
The TCJA eliminated this deduction entirely starting in 2018 and continuing through 2025. This means that if you’re an employee who drives for work you may not deduct any of your car expenses on your personal tax return.
You should seek to have your employer reimburse you for your work-related mileage. You can use the standard mileage rate—54.5 cents per mile in 2018—to calculate your reimbursements. Such reimbursements are tax-free to you, the employee, so long as you adequately account for your mileage and also tax deductible by your employer. If an employee drives his or her car a lot for work, it could be worthwhile to accept a salary reduction in return for such reimbursement. Tax must be paid on salary, while the reimbursements are tax-free.
Alternatively, an employer can provide an employee with a company car, which would be tax free if the employee only uses it for work-related driving (not including personal commuting).
https://www.buildium.com/blog/how-tax-reform-affects-your-2018-mileage-deduction/
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If he does, a double screw job is coming his way.
