Tax bill mileage deduction was it eliminated?

Did the new tax bill eliminate mileage deduction? If it does that would end most of my mystery shopping. How about you? I would still do shops for eating out.

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More About Mystery Shopping Taxes

We don’t know yet.... the House and Senate need to iron out the differences in the two bills.

Hard work builds character and homework is good for your soul.

If it is eliminated how will that affect mystery shopping for everyone? For the MSC and shoppers.

Edited 1 time(s). Last edit at 12/02/2017 11:51PM by johnb974.

If it will..I will ask for mileage bonuses more often..

Shopping Eastern Pennsylvania since 2009

It's hard to know how it will affect mystery shopping... If we can't deduct mileage, MSC's will have to pay a little more to get their shops done.... However, the tax bill could have a much more significant impact on us than just that.

If the GOP is correct, it will cause the economy to really boom and unemployment to plummet. This will mean more folks who have regular jobs and fewer who will choose to shop. At the same time, the booming businesses will demand more shoppers and have more money to spend on shopping. This would be very, very good for us as MSC's will have to pay more to attract from the limited number of shoppers available to do them.

If Democrats are correct, all benefits from the tax cut will got to the wealthiest among us and folks will have fewer government subsidized benefits. Health insurance costs will make it out of reach for many more folks. Wages won't go up. More folks will be desperate for extra money and the shopping economy will be depressed as there will be more shoppers available... I heard one economist predict a major recession. That would be bad.

So, do you believe in the GOP's Supply-Side Economics (and the Laffer Curve) or do you believe in Democrats' Keynsian Economics?

I'm not an economist. My take is : Hang on, we could be in for a ride.

Hard work builds character and homework is good for your soul.

You're a h.s. teacher, right? If you don't mind me asking, what do you teach?

@MFJohnston wrote:

So, do you believe in the GOP's Supply-Side Economics (and the Laffer Curve) or do you believe in Democrats' Keynsian Economics?

I'm not an economist. My take is : Hang on, we could be in for a ride.

Trickle down economics has never worked. If companies pay lower taxes they will keep the profits. How many companies now have record profits and still will not raise wages.

If they drop the mileage deductions I think the MSC will have to pay much more for their shops. I'll be limited mostly to shops for eating out.

I teach calculus....

Hard work builds character and homework is good for your soul.

My understanding at this point is the mileage deduction being eliminated would apply to employees who will no longer be able to deduct any unreimbursed business expenses. Since the bill itself has mostly been in secret and changes will be made, all we can do is speculate right now. Personally, I would like to see an end to riders having nothing to do with a specific piece of legislation. There should be a requirement for unrelated issues to be introduced and voted on separately.

Equal rights for others does not mean fewer rights for you. It's not pie.
"I prefer someone who burns the flag and then wraps themselves up in the Constitution over someone who burns the Constitution and then wraps themselves up in the flag." -Molly Ivins
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it's interesting this is the only part of the tax bill I keep reading about here. There are quite a few other changes proposed that could greatly affect us if they go through including the "Gig act" that would make businesses withhold income tax from their contractors. Honestly, most proposed changes are beyond my understanding but I thought others ms shoppers here would be discussing them.

Even if the "Gig Act" went into force, all one need do is claim enough deductions to avoid over-withholding.

Based in MD, near DC
Shopping from the Carolinas to New York
Have video cam; will travel

Poor customer service? Don't get mad; get video.

@walesmaven wrote:

Even if the "Gig Act" went into force, all one need do is claim enough deductions to avoid over-withholding.

Some of us don't make enought to take any deductions. I'm single, no kids, on Social Security.

If you are working as an independent contractor you should be filing a Schedule C and taking the appropriate deductions.

John,
That is the whole point of my statement. IF they are going to withhold taxes, they MUST have you fill out a form stating how many deductions (people) they should base the withholding on. You can legally "claim" enough on that form to reduce the withholding to zero, or (for others) to near the amount you might actually owe at the tax deadline, over even to have too much withheld if you want a nice refund (and do not mind lending the government your money at zero interest). That is how millions of people, employees and ICs have avoided over-withholding or required it (Some people prefer to have a tax refund due!) every year for decades.

Based in MD, near DC
Shopping from the Carolinas to New York
Have video cam; will travel

Poor customer service? Don't get mad; get video.

I do file schedule C. If the mileage deduction is eliminated I'll only do food shops. Since reimbursment are not taxable, I won't have to file any tax form.

@walesmaven wrote:

John,
... You can legally "claim" enough on that form to reduce the withholding to zero, or (for others) to near the amount you might actually owe at the tax deadline, over even to have too much withheld if you want a nice refund (and do not mind lending the government your money at zero interest).

Just in case any reading this do not know about this tactic...you do need to report the correct number of deductions on your tax form so that even though you might say 10 deductions on your W 9 when it gets to the 1040/1040A you need to use the correct number on that form (1 if you are single and not blind or some other reason you get an extra 1 for example).

If there is a silver lining...when unemployment was at a low and the economy was strong on the late 90's, MS rates were good and reimbursement levels were much higher.

That said, I have little faith in the tax bill raising employment statistics. If we lose the ability the deduct milage I hope everyone takes that into consideration next time there's an election. Yes, this is a political post!

Steve,
Yes, but it is also a post DIRECTLY related to the businesses that we must all manage. To me, that makes a difference.

Based in MD, near DC
Shopping from the Carolinas to New York
Have video cam; will travel

Poor customer service? Don't get mad; get video.

My only reportable income is from Mystery Shopping. That is less than $4000 a year. I don't have any W2's to file. I do have to pay Social Security and Medicare taxes from mystery shopping. If they eliminate the mileage deduction will i pay more in those taxes?

where did you see such elimination? I dig all internet yesterday and today and read all comments about new tax bill and could not locate such elimination..could you please post the link there?

Shopping Eastern Pennsylvania since 2009

Did you google "tax bill milage elimination"?

John,
You still have to file using Schedule C for MS income and expenses. So nothing will change there. IF AND ONLY IF the bill requires MSCs to withhold taxes, you would just use a different form (not at tax time, but to file with the MSCs before they could withhold any tax)) to declare about 2 dependents so that they will essentially withhold nothing. You DO NOT need to have any dependents at all to file to have withholding that assumes that you do! It is just a mechanism that people legally can use to avoid over-withholding!!!

Based in MD, near DC
Shopping from the Carolinas to New York
Have video cam; will travel

Poor customer service? Don't get mad; get video.

Everything I read says the new tax bill does not eliminate business related expenses such as mileage for the self employed. It does eliminate some expense deductions for employees. So no reason to panic yet.

[www.inc.com]

Edited 1 time(s). Last edit at 12/03/2017 06:29PM by kenasch.

I saw that also..but nothing about self employed..

Shopping Eastern Pennsylvania since 2009

The article I linked is talking about the self employed.

John, how do you currently deduct mileage and other business expenses if you don't file a Schedule C?

I file schedule C. I have to for the Social Security and Medicare taxes.

Although this proposal (which would take effect beginning with the 2018 tax year) would dramatically affect employees who incur unreimbursed expenses related to their job (such as home office expenses, union dues, work-related education, job searches, legal fees, subscriptions to trade journals, etc.), it does not affect small business owners or self-employed persons, who would still be able to declare business expenses on IRS Form 1040, Schedule C (Profit or Loss from Business).

I think this answers my question.

In other words, most of the answers you got here were correct.

Based in MD, near DC
Shopping from the Carolinas to New York
Have video cam; will travel

Poor customer service? Don't get mad; get video.

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Tax bill mileage deduction was it eliminated?

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