Re: Gas reimbursment instead of mileage?

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You can deduct the expense on your personal taxes. Keep
track of the number of miles (or you can use actual expenses
based on your situation) and keep track of the amount of gas
reimbursement you receive. At year-end, you can use IRS form
2106 (an attachment to your schedule A) to claim the
difference between what you were eligible to receive and the
amount you actually received. It will have lines to
calculate mileage (or actual) expenses and another line to
reduce that figure by reimbursements.

On 1/13/10, Bradley wrote:
> I recently accepted a job in my hometown, we'll call
> it "City A". However, I am required to travel to the
> Corporate office 3 days per week in "City B", which is 220
> miles (each way). The other 2 days I work at the office
> in my hometown. The original agreement was the company
> will reimburse my mileage at .55 per mile. After a month
> of travel, the company has realized how much it's costing
> them for my weekly travel to corporate. The CEO just
> informed me they are now implementing a policy where the
> company will ONLY reimburse gas (with receipt). They will
> not pay a mileage rate. My question: how will I be
> compensated for wear & tear, depreciation, maintenance,
> higher insurance costs, etc.? Will it benefit me at tax
> time or will I loose a lot of money? I expect I'll travel
> about almost 23,000 business miles this year for the
> firm. HELP!