I work for a private company in Texas and am required to drive my own vehicle up to 1000 miles per WEEK. I am reimbursed by my employer only $.32/mile. I happen to know that he charges the companies we contract out to $.50/mile. Is this legal? Is there a minimum amount that private companies are required to reimburse employees per mile?

In your state, and in 47 others, the employer is not required to reimburse you for mileage at all. If you are getting .32 a mile, that is .32 more that the law requires you get, regardless of what he may be billing the client.

Fair? Maybe not. Legal? Yes.

Just a thought for one of the tax guru's here.

I recall that the IRS allows for a significantly higher rate than .032. Given the unreimbursed difference and the substantial mileage he drives could he claim the difference on his taxes?

Just a thought for one of the tax guru's here.

I recall that the IRS allows for a significantly higher rate than .032. Given the unreimbursed difference and the substantial mileage he drives could he claim the difference on his taxes?

Maybe, IF the difference plus any other unreimbursed business expenses exceed 2% of AGI. The OP can consult a tax preparer for more information, including the records to be kept.

Not a tax guru, but love to get all the refunds I'm entitled to!

Keep track in writing of all mileage driven for work (dates and distances), and how much you have been reimbursed for.

The IRS's current figure is 50.5 cents a mile. So if you are getting 32 cents, that's 18.5 cents ($.185) a mile unreimbursed.

When you file your taxes, share all of this with your tax preparer, and any unreimbursed work expenses above 2% of your adjusted gross income (AGI) can be a deduction.

A lot of people don't think they will cross that 2% threshhold, but it's actually pretty easy, as long as your income isn't astronomical.

Just say your AGI is $40,000. 2% of that is $800. I'm not math wiz, but I figure that you'll hit $800 unreimbursed after about 4300 miles. You say you drive that much in about 4 weeks. Once you've incurred $800 in unreimbursed work expenses, it counts! You salary & AGI may be higher, but you drive a lot.

Deduct! deduct! deduct!

Just saying that sometimes, it can be more advantageous to calculate the ACTUAL cost, especially these days.

Thanks for the advice. I always keep records of exact mileage and dates and even the reason for the trip. And yes, I spend well over the 2% so I'll be taking advantage of that. I appreciate your feedback.

BTW, I'm not unsympathetic - BTDT. I'm in one of the states where mileage is reimburseable under the law but I was driving 600 miles a week that was not reimburseable at all - what I did get was a pittance in comparison.

Good luck!

Reason I mentioned seeing a tax preparer is that sometimes, it's better to deduct actual costs, such as gas, additional maintenance, extra insurance, etc. than just using a flate rate. Of course, you would have to deduct what the employer pays from that.

Just saying. :)