- If your itemized deductions are greater than the dollar amount of your standard deduction allowed by the IRS, you will benefit from itemizing your deductions on your return. Certain taxpayers are not allowed to use the standard deduction. According to the IRS website, if you are married, filing a separate return, and your spouse chooses to itemize deductions, you may not use the standard deduction. Non-resident aliens or dual-status aliens may not use the standard deduction, and you may not use the standard deduction if you are filing a tax return for less than 12 months due to a change in accounting method.
- You are able to deduct job-related expenses incurred while you were carrying on ordinary and normal job functions, as well as necessary job expenses related to your occupation. You may not claim these expenses if your employer used an accountable plan to reimburse you for your expenses. If your employer used a non-accountable plan to reimburse you for your business expenses, you may claim these expenses as a deduction for business use. The IRS allows you to deduct business use expenses that are greater than 2% of your adjusted gross income.
- Vehicle expenses can be deducted as business expenses. If you use your car both for business and personal use, expenses related to your personal use may not be claimed as a deduction. There are two types of methods used to claim vehicle expenses as a deduction, which include a standard mileage rate, as defined by the IRS and adjusted periodically, and the actual expense method. Using the actual expense method, you may include your gas expenses along with other vehicle expenses, including oil, repairs, tires, insurance, registration fees, licenses, and depreciation for the portion of the car used for business. You must calculate the costs in a way that separates the business use from personal use, and deduct no more than the percentage for each cost that is applicable to business use.
- When you calculate vehicle deductions by the actual expenses method, the IRS does not allow you to deduct certain transportation expenses, which includes gas expenses when you travel between your home and the first business contact, and from your business contact to your home. You may deduct gas expenses when you travel from one business contact to another. Also, if your home qualifies as a home office for your business, you may deduct gas expenses when you travel from your home office to a business contact. You may deduct travel expenses when you travel to and from your home to a location for business use other than the office where you normally work, so in many instances, travel-related expenses for business trips are deductible. If you deduct gas expenses for work as an independent contractor rather than as an employee, you may include such expenses for daily travel to client contacts and project sites.