Anonymous
Anonymous asked in Business & FinanceTaxesUnited States · 1 month ago

Tax deduction for food delivery? Help! ?

I am a college student and have picked up a part time job for the first time, so this will be my first time filing taxes and I have run into some confusion. I am a pizza delivery driver for Papa John’s, and I have been told that I could be reimbursed for my mileage as part of my tax return. I tried filing my taxes on TurboTax, and after entering my information I received a $1,200 deduction (after subtracting my mileage reimbursement of $0.15 per mile from PJ), however my actual tax ‘return’ still says only $400 (all that I paid in to federal and state taxes). I’m new to this so it’s a little confusing; is it not possible for me to be reimbursed any further? Thanks for any advice!

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  • 1 month ago

    Papa John's should reimburse you for mileage in your vehicle to deliver product for them. The IRS standard rate for 2019 was 58.5 cents a mile..Deduct that from your wages to determine how much you are really being paid.. It can't be deducted on your tax return at all.

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  • 1 month ago

    What you were told was very wrong. It was never possible to get a reimbursement on your taxes. It used to possible to get a deduction, but even that is not possible anymore, because Congress changed the law.

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  • Judy
    Lv 7
    1 month ago

    No, sorry. Even under the old tax rules, you would have had to itemize, and could not have. They were mistaken - or lied. No, you don't get reimbursed any more.

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  • Eva
    Lv 7
    1 month ago

    There used to be a tax deduction for employee business expenses, which is what your mileage would have fallen under, since you're a W2 employee. You would have had to have had enough other deductions to add up to more than the standard deduction in order for it to do any good. Under the new tax law that took effect for 2018, employee business expenses were eliminated. That means you get NO deduction for your mileage.

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  • 1 month ago

    Why do you think you should get more back than you paid in? You didn't earn enough for the deduction to help you. You can't itemize unless you made more money.. only having $400 deducted means you didn't earn enough to be able to itemize deductions.

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  • 1 month ago

    If you were a direct employee and received a W2, then you cannot deduct mileage.

    That law changed for tax year 2018 and beyond as part of the Tax Cut & Jobs Act - informally known as the "Trump tax cuts" or other similar names.

    But don't get too caught up on politics here, its unlikely that you would have gotten any benefit under 2017 laws either. Under those old laws mileage wouldn't be deductible until it exceeded 2% of your income, and then the deductible portion would have to exceed your standard deduction which was over $6,000 - so your $1200 mileage deduction wouldn't have helped you back then either.

    Besides, even if it was still deductible and you had enough deductions to itemize, it wouldn't have helped you very much. A tax deduction does not reimburse you for the deductible expense, it merely allows you to pay that expense with pre-tax dollars, which saves you whatever tax you would have paid on the money that you spent.

    So the $1200 deduction would reduce your taxable income by $1200 (if you met all the criteria to actually benefit from it) and if you were in the 10% tax bracket that would save you a mere $120 in reduced taxes. So that $1200 expense would really only cost you $1080 out of pocket when you add it all up. So no, they don't reimburse you for the expense, they just make it slightly cheaper IF you actually meet all the rules to benefit from a tax deduction. 

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  • 1 month ago

    You can deduct mileage with a log. Not reimbursed. A deduction reduces your income, it does not reduce your tax directly and you do not get reimbursed.

    Whomever told you you got reimbursed was wrong, or you misunderstood how a deduction works.

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  • 1 month ago

    In the world of taxes, "I was told...." is normally followed by incorrect information about 98% of the time.

    The mileage deduction for employees was eliminated in the new tax law.

    However, even under the old law, you would not have benefited.

    Take your $400 and like it.  

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  • Anonymous
    1 month ago

    A tax return is the information you file.  A tax refund is if you get money back.

    That said, if you were an employee and got a w-2, the Trump tax law changes eliminated all deductions for unreimbursed business expenses, period.

    If Papa Johns somehow treated you as a contractor and issued you a 1099-misc, all the mileage would do is reduce the income for the deliveries. If you had made money from it, you would have owed self-employment and income tax and your refund would have gone down.  (Or, put it this way, the government does not pay you for your expenses.)

    I am guessing your income before doing deliveries was less than $12,200 and afterwards was the same or less.  Thus you owed $0 in tax and all you got back was what you put in.

    BTW, using government estimates, you put $1200 wear and tear on your car making deliveries...meaning you effectively paid the pizza place to deliver for them....AND you fell for it.  

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