Can you deduct taxi fare

Normally, the cost of transportation from your home to your place of business is not a tax-deductible expense. However, if you have a temporary assignment -- expected to last one year or less -- at a different location than your usual workplace, the cost of transportation is deductible. If you do not have a usual workplace but typically work within the city or suburbs where you live, transportation expenses outside that metropolitan area are deductible.

For example, you receive an assignment that takes you out of your metropolitan area. If you must use a taxi because you do not have a car and there is no public transportation available, that taxi ride would be deductible. If you are traveling away from home for business, the cost of a taxi to take you to and from an airport to your hotel and from your hotel to your client is a tax-deductible expense.

You may deduct the cost of transportation to receive essential medical care. If you are ill and require a taxi to take you to your doctor or the hospital, the fare is deductible. The cost is not deductible if the travel is not essential, such as going to the doctor for an annual physical. The aim of reverse charge is to bring this unorganised sector under the tax umbrella. It also removes the burden of tax compliance from individuals with limited resources drivers to large companies Ola with enough resources.

They can choose not to claim ITC of the tax paid on various inputs. Businesses cannot claim ITC if they take cab services. There are already discussions and petitions to the government from the car lessees and the leasing companies.

For passengers, GST has been beneficial as it has reduced travelling costs slightly. However, GST poses problems for the cab companies and the drivers due to the tremendous increase in the lease payments. Unless government addresses these concerns, these companies and ultimately the drivers will bear a significant increase in their costs, which may force them to look for employment elsewhere.

ClearTax has also partnered with Uber to help Uber drivers to file their tax returns. Thank you for your response. The 1 GST billing solution for your business Create, edit, share invoices on- the-go Also available on web.

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Nor can you deduct the value of a project you create for charity, such as a poster or T-shirt. But you can deduct the miles you drive doing charity work at the rate of 14 cents per mile, unchanged from Keep good records of your miles logged for charity work. Be sure to keep your receipts. The IRS says the first hard-wired phone line in your home is considered a nondeductible personal expense.

But you can deduct as a business expense the cost of business-related long-distance charges on that phone. And if you have a second landline phone specifically for business use, its full cost is deductible. And if your employer provides you with a cellphone as part of your job, this could increase your taxable income.

A little family dog can result in some big bills. But those expenses are not tax-deductible. However, the cost of buying, training and maintaining a guide dog or other service animal for someone who has a physical disability is tax-deductible. This generally includes any expenses incurred to maintain the animal — including for food, grooming and veterinary care — so that it can perform its duties.

The cost of getting to and from work is not tax-deductible. Taking a bus, subway, taxi or driving your own vehicle to work is a personal expense, regardless of how far you have to travel. You also can deduct transportation expenses between your home and a temporary job that is expected to last one year or less. And if your home is your main workplace, you can deduct transportation expenses for going from your home to another work location in the same trade or business.

FICA taxes are not deductible. But if you overpaid the tax, you can get a credit for FICA over-withholding. You pay FICA taxes only on wages up to the limit. If you had more than one job and your combined earnings exceed the wage base limit, you might have overpaid FICA taxes, in which case you may be able to request a refund or a tax credit. Face-lifts, liposuction, electrolysis and other procedures done to enhance your appearance are not deductible medical expenses.

But if your doctor says you need a nose job to treat respiratory problems, for example, it becomes a deductible medical expense. The IRS says you can deduct the cost of plastic surgery if it is necessary to improve or correct a deformity resulting from a congenital abnormality, an injury incurred in an accident, trauma or a disfiguring disease.

Looking sharp at work rests totally on your shoulders. Also deductible are cleaning charges for nonprofit uniforms, such as an outfit required of hospital volunteers, or Boy Scout or Girl Scout troop leaders.