Quote:
Originally Posted by Xist
Well, they don't pay us 63¢ per mile, it is a deduction, and I am in the 22% tax bracket, so for each mile I drive between clients--not between my home and my clients--I owe 13.86¢ less.
When I was seeing clients in Phoenix and driving my 44 MPG Civic I didn't save enough on my taxes to cover my gas.
Now I have clients an hour away, but I try to group them.
Our office keeps talking to me about a mom who rarely responded and the first time she confirmed she didn't answer her door. Then she either claimed she needed to have her hair waxed or just didn't respond until I stopped reaching out.
They told me to e-mail her, sometimes she responds to that.
The other day they told me to try to schedule something during the week and I said that I couldn't drive to the same town an hour away twice a week for just one client.
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You're right - the mileage is a deduction. What the state is paying for is your driving time. They have to pay you to drive that 1 hour each way to see a client.
I find it hard believe you are paying 22% federal income tax after deductions. Even making $100K as a single guy and taking only the standard deduction you would only pay 15%