Major Winters, a member of the Army Reserve, traveled to a location 250 miles from his home to perform his work in the Reserve in June 2017. His unreimbursed expenses consisted of $195 for lodging and $268 for mileage. In addition, he incurred mileage expenses of $235 throughout the year for trips to a location 20 miles from his home. How much is Major Winters eligible to deduct on Form 1040, line 24, as an above-the-line adjustment for certain business expenses? *
| $0 | |
| $268 | |
| $463 | |
| $698 |
Answer is $463.
Since the 20 mile is less than specified 100 miles by IRS it is not eligible to deduct.
The IRS states the rule as such:
"If you are a member of a reserve component of the Armed Forces and
you travel more than 100 miles away from home in connection with
your performance of services as a member of the reserves, you can
deduct your unreimbursed travel expenses on your tax return.
Include all unreimbursed expenses from the time you leave home
until the time you return home. See How To Report My
Reserve-Related Travel Expenses below for information on how to
report these expenses on your tax return."
Major Winters, a member of the Army Reserve, traveled to a location 250 miles from his...
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