Conference 7.286::digital

    Can't you claim the 0.31 - 0.225 on your Federal and State taxe
    returns?
    
    	Regards,

> Can't you claim the 0.31 - 0.225 on your Federal and State taxe
> returns?

  You can, but it's audit bait.

  This number has been static for years, representing just another
  way that Digital shifts its costs to *YOU*.

                                   Atlant

    I suggest you send an email to corporate counsel asking for the
    explanation.  If not them, then try human resources.  I'm not sure who
    that is, but I suspect that department sits in Maynard?
    
    -- Marian

> Can't you claim the 0.31 - 0.225 on your Federal and State taxe
> returns?

But the only way you'll see any deduction from it is if the total of
such unreimbursed expenses are more than 3% of your income.

So, if DEC pays you $50,000, 3% is $1,500, and at an unreimbursed 8.5 cents
a mile you'd have to drive 17,647 miles before you'd be able to claim any
of it as a deduction.

/john

>>    Can't you claim the 0.31 - 0.225 on your Federal and State taxe
>>    returns?
    
    Yes, you can get the tax benefit of the full 31 cents but you still end
    up with 8.5 cents a mile less to pay your expenses.
    

    I've often wondered whether Digital gets to claim the full IRS-allowed
    rate on their taxes, while reimbursing employees at the lower rate?  If
    so, looks like a pretty good deal for the company!
    
    Dick

re .6  No, Digital cannot do that.

/john

>             <<< Note 4607.4 by COVERT::COVERT "John R. Covert" >>>
>
>> Can't you claim the 0.31 - 0.225 on your Federal and State taxe
>> returns?
>
>But the only way you'll see any deduction from it is if the total of
>such unreimbursed expenses are more than 3% of your income.

Plus, this trick only means you don't pay taxes on the money that
you weren't reimbursed, not that you get it all back.
The 3% limit aside, all it can mean is not paying your marginal tax rate
(likely between 10 and 15% average rate at the example 50K salaray)
on the money you spend on company travel.

- tom]

    Does anyone have any ideas on how we can work together to correct this
    inequality?  I was intrigued to see this note heading, because this has
    annoyed me for awhile now.  I think that the Company should be forced
    to address this issue; even if the answer is, "Well right now we can't
    afford it."
    
    Mike

    The deduction is over 2% of adjusted gross income.
    
                              Steve J.

    Better yet.. IF you get in an accident while driving for Digital, they
    will gladly give you your 22.5 cents and then let you pay your
    deductible and other associated costs.. hehehehe.. Aren't they slick
    Teflon should be so smooth...
    
    
    Moral.. If you want me to drive for Digital, get me a car or make sure
    it's in walking distance..
    
    Joe

    
       Does anyone know what the real return from taxes is because it
    is a tax deduction, not a tax credit?
    
       I mean what do you really get back from taxes at year end at
    $0.31 cents a mile (you don't truly get a 31 cents),
    versus getting 0.225 cents direct into your pocket right away
    when you receive reimbursment, not to mention a simpler process?
    
       Mark

    
>       Does anyone know what the real return from taxes is because it
>    is a tax deduction, not a tax credit?
    
    
 		(Your tax rate) * (the expense claimed) 
    
    
    If I have $200 of "work mileage" and my marginal tax rate is 31% I will
    reduce my taxes by $62.  This assumes I've cleared the 2%-3% minimum
    threshold.  Regular commuting mileage does not count!
    
    Greg  

    
      re: .13
    
          So the choice is put $200 in your pocket or save $62 at year
       end by your example?  So maybe $0.225/mile directly reimbursed
       isn't such a bad thing....
    
                 Mark

    re last few
    
        Digital pays 22.5 cents per mile. This is tax free. If you are on
    plan B, Digital pays 8 cents per mile tax free. You take your total
    business miles times 31 then subtract your total business miles times
    22.5 or 8 depending upon your reimbursement rate. The difference that
    exceeds 2% of your adjusted gross income is your deduction. 
        If Digital paid 31 cents flat rate, there would be no deductions or
    credits at the end of the year. Digital currently pays about 2/3 of
    what the IRS allows. 
    
                                Steve J.

re: 4607.11 
>>                             -< Think on this... >-

>>    Better yet.. IF you get in an accident while driving for Digital, they
>>    will gladly give you your 22.5 cents and then let you pay your
>>    deductible and other associated costs.. hehehehe.. Aren't they slick
>>    Teflon should be so smooth...
    
Better yet, you not only eat the deductible, but the insurance company
    tells you that since you used your car for business, you lied on the
    policy, so they don't have to pay at all!    
    
>>    Moral.. If you want me to drive for Digital, get me a car or make sure
>>    it's in walking distance..
    
    
    I tried that years ago.  I was told by our local personnel rep that
    since the Orangebook says that "it is the employee's responsibility to
    get to his/her place of business" I was required to provide  my own
    transportation (Even though I normally work out of Los Angeles, and the
    business meeting was in San Diego).
    
    To protect myself, I started renting at the Company rate, and only
    being able to be reimbursed for the 22��.
    
    tom

    To help "even out" the mileage reimbursement policy, ride a bicycle
    and put in for the 22.5 cents/mile.  I've done it before when attending
    local meetings in the GMA.  Nothing in the Orange Book 5.11 section
    says your "vehicle" must have a motor.  Bikes are generally in the
    @5 cent/mile range including depreciation and normal wear, so it
    works out well.  Kratz 

    re.16
    
    Your only responsibilty is to get to your office.. Not to wherever they
    want to send you...
    
    
    Joe
    

 >>                         -< Sound like BULL to me.. >-

>>    re.16
    
>>    Your only responsibilty is to get to your office.. Not to wherever they
>>    want to send you...
    
    That was my opinion, too.  But when your manager and your personnel rep
    are buddies...

    Well, I guess I know what you mean. I never signed anything that say I
    must have a CAR.. It depends on how much you want to push it in this
    wonderful employee environment we're in.. :-(
    
    
    Joe
    

Back in 1989/1990, I worked at a Petty Cash window (remember them?) at DAS in
Andover, MA. I received several inquires from my customers (employees)
questioning the $ .225 mileage reimbursement rate.

I inquired into the matter and ended up with the Corporate Tax Department I was
informed that the matter had just been reviewed, and the determination was made
not to change the Corporate reimbursement rate "at this time". That was when the
IRS had increased their mileage allowance to $ .26 per mile.

For what it's worth...

Sue 

    So, what do we do to get Digital to bump the rate up to $.31/mile??
    I sometimes put 300 miles on my car in a week...  MCS says "save money"
    and there are no car plans being given out at this time...But when your
    ride is a v8, .225/mile doesn't cut it - especially in light of the 
    increased gas prices, insurance premiums and all the other issues
    brought up here...
    
    So - what do we do about it?
    

    
    	Get rid of the Mustang, and buy a Geo Metro.
    
    	.225 cents/mile will have the car paid off in about 6 months.
    
    	Glad to help.  8^)
    

    > .225 cents/mile will have the car paid off in about 6 months.
      
    ...at which time the car will unceremoniously stop running.  :-)
    
    It is difficult to run almost any car at less than $.225/mi these days,
    especially if it is a newer, reliable car.  So although I do almost no
    driving for Digital, I sympathize.
    
    	Steve