If you keep track of your mileage while working in North Carolina, you can take deductions on your tax returns. Mileage deductions are assigned a standard rate you can apply to your year-end taxes. The mileage deduction does not include separately listed tolls and parking fees. You must itemize your deductions on Form 1040 Schedule A to claim mileage on your taxes.
The miles claimed on your income tax return must not be for personal use and must meet certain other requirements. Mileage can be deducted if you are using your car for business purposes or are self-employed. Commuting mileage cannot be deducted from your income tax. Mileage related to job seeking, medical care, moving, educational purposes or for charity can be deducted.
Keep track of mileage rate increases throughout the year. The Internal Revenue Service can decide to increase mileage deduction depending on the cost of gas. For instance, for 2011, North Carolina residents can claim 51 cents per mile for the first six months of the year and 55 cents per mile for the last six months of the year when using their car for business purposes. Medical mileage deductions increased from 19 cents per mile to 23 cents per mile. Charitable mileage deductions remain the same for the year at 14 cents per mile.
You are required to track mileage to claim any deductions when filing taxes in North Carolina. You must record the total number of miles used on the vehicle during the year. Also, keep a list of miles used for each purpose: moving, business, education and charity. If you are audited, you may be required to submit a log that details mileage for these purposes.
If you want to claim a deduction on your North Carolina vehicle for mileage, you cannot claim the depreciation of your vehicle. The IRS does not permit a depreciation deduction using the Modified Accelerated Cost Recovery System and a mileage deduction. You also cannot claim Section 179 on your Form 1040 to qualify for the standard mileage deduction.
- IRS.gov: Business Use of Car
- Carolina Accounting and Tax Service: IRS Annouces Mileage Rate Increase for Deduction of Auto Expenses
- Liberty Tax Service: IRS Mileage Rate
- Internal Revenue Service. "IRS issues standard mileage rates for 2020." Accessed Feb. 3, 2020.
- Internal Revenue Service. "Standard Mileage Rates." Accessed Feb. 3, 2020.
- Cision PR Newswire. "Runzheimer Data Sets 2017 IRS Business Mileage Rate at 53.5 Cents." Accessed Feb. 3, 2020.
- U.S. Government Publishing Office. "H. R. 606." Accessed May 1, 2020.
- Internal Revenue Service. "Publication 463 Travel, Gift, and Car Expenses," Pages 13-15. Accessed Feb. 3, 2020.
- Internal Revenue Service. "Publication 526 Charitable Contributions," Page 6. Accessed Feb. 3, 2020.
Heather Topham Wood is a seasoned writer whose work has appeared in numerous publications, including USA Today, Gadgetell, Feel Rich and Step in Style. Heather is a published novelist with six Amazon bestsellers and a contract through Crescent Moon Press. She holds a bachelor's degree in English from TCNJ.