Commuting to School? Keep the Tax Meter Running | Tax Tip of the Week | No. 59

If you drive to college classes, your commuting expenses are an often overlooked deduction.  For 2010, you can use the standard mileage rate of 50 cents per mile plus tolls and parking fees for education-related travel.You can also deduct the transportation expenses incurred between your workplace and school if you go directly to school after work.  Also, the cost of transportation from school to work is deductible if you attend school early in the day and go from class to work.Here is the fine print:

• The classes you attend must be to enhance or promote your current career or profession.  Classes to help you start a new career or profession do not qualify.  For example:  a teacher attending classes for a Masters in education would qualify.  A student taking undergraduate classes would not qualify for the transportation deduction.
• You must be able to itemize your deductions.
• These transportation deductions are Miscellaneous Deductions subject to a 2% floor.

If you are taking classes this year be sure to keep track of your mileage.  It may pay off on your next tax return.As always, give us a call if you have any questions.You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504. Or visit our web site.Rick Prewitt - the guy behind TTW...until next week.