Quote:
Originally Posted by jamesqf
In most circumstances mileage is a business expense that gets deducted on Schedule C, in order to figure your actual business profit. In addition to the income tax, though, you also have to pay Social Security/Medicare taxes on that business income (Schedule SSE). IIRC that's about ~12.3% of your business profit, so about $1230 less tax.
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Right, but I'm guessing Xist is not the owner of the business. If you have to travel for business reasons but do not own the business, the deduction applies to regular income instead of business income.