Question

In 2019, Bill Jones drove 3,800 miles for medical reasons. He spent $500 for gas, $30 for oil, and $100 for tolls and parking. Using either actual expenses or standard mileage rate, what is the largest amount he can include for car expenses in his medical expenses on his tax return?

(If possible please explain. I thought the answer was 890, but apparently i'm wrong)

Answer 1

you can use two methods to calculate car-related expenses for this deduction. The actual expense method lets you include out-of-pocket expenses like gas and oil. For the medical expense deduction, you can’t include depreciation, insurance, maintenance or general repair expenses.

You can also use the standard mileage rate of 20 cents per mile (for 2019) to calculate your medical mileage portion. For both methods, you can include parking fees and tolls.

here if we take 1st method

His total expense is $500 for gas ,$ 30 for oil, $ 100 for tolls and parking

= 500+30+100 = $ 630

2nd method

Standard mileage rate 20 cents per mile that is = (3800*20)/100 = $ 760

add : Tolls and parking $ 100

there for Total amount = $760+$100 =  $ 860

if we are choosing the standard mileage rate then we cannot add gas charge and oil with that.

so, The largest amount he can include for car expenses in his medical expenses on his tax return is $ 860