How to Write Off Mileage on Massachusetts Income Taxes
- 1). Complete your federal taxes. Any decisions about deductions and other tax issues in Massachusetts are largely dependent on the return that you file with the federal government. Fill out your forms as completely as possible, including itemizing any deductions that you may have, which is necessary to deduct mileage on your Massachusetts taxes. Write down your federal adjusted gross income (AGI). File your tax forms as soon as possible.
- 2). Make sure the mileage you're planning to deduct qualifies under state and federal law. To qualify, you cannot have been reimbursed for the mileage by your employer; if you file federal taxes jointly, you must file a joint return in Massachusetts; and the total cost of all unreimbursed business expenses must exceed 2 percent of your federal AGI. For example, if your AGI was $60,000, your costs could be deducted only if they exceeded $1,200. This can include parking, hotel rooms and other travel expenses.
- 3). Fill out your Massachusetts income tax forms, including Schedule Y, fully and completely. Calculate the total of all of your business expenses, and enter that number into Line 1 of Schedule Y. Be sure to complete the rest of Schedule Y fully and completely, and compare your Massachusetts tax forms to your federal forms. Examine them for any inconsistencies between the two to make sure your state return is not audited. File your state forms when you are satisfied they are correct.
Source...