Can My Employer Make Me Pay for the Commuting Distance?

As a tax professional, especially within the realm of SEO, it's essential to understand the nuances of tax deductions, particularly when it comes to mileage and commuting expenses. If you are an employee who drives to various client locations, the question often arises: can my employer make me pay for the commuting distance? This article aims to clarify these points.

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Commuting vs. Mileage Expenses: What's the Difference?

Getting to work every day is not considered a deductible expense, as commuting is a necessary component of the job. However, if your employer sends you somewhere to work, other than your main office, mileage can be claimed.

Source: Publication 529, Miscellaneous Deductions (2015 edition)

US Tax Perspective on Mileage Reimbursement

While it can be frustrating that your employer does not reimburse you for all the miles driven to your clients, there is no legal requirement for them to do so. Each company has its own expense reimbursement policy, and the decision often depends on the specific business practices and policies in place.

According to the IRS, unreimbursed employee business-related expenses can be deducted. Travel expenses between your home and the office are not deductible, but unreimbursed miles driven to client sites are. The rate for unreimbursed miles as of 2023 is 0.575 per mile.

My suggestion is to maintain a detailed log of all miles driven when working on-site at client locations. This includes the travel date, total miles driven, client name, reimbursed miles, and unreimbursed miles driven. This log will serve as supporting documentation for your tax return.

It's important to keep a record of all expenses and receipts for tax purposes.

Source: Tax Topic 517

Employer's Reimbursement Policy

Your employer is under no obligation to reimburse you for all the miles driven, and they may choose to only reimburse a portion, such as 20 miles. However, you can still deduct unreimbursed mileage as a work-related expense on your taxes. The key is to maintain an accurate log of all expenses.

Here's an example of a mileage log:

Date Total Miles Driven Reimbursed Miles Unreimbursed Miles Client Name January 1, 2023 50 10 40 Client A January 5, 2023 35 5 30 Client B

Conclusion

The IRS does not require employers to reimburse employees for all mileage driven, but employees can still deduct unreimbursed mileage as a work-related expense on their taxes. It's crucial to maintain accurate records and logs to support your claims effectively.

If you need further clarification or assistance with tax documents, consider consulting a tax professional or an accountant.

Stay informed and proactive in managing your financial responsibilities. For more information and resources on tax deductions, visit our detailed guide.