How to Deduct National Guard Travel Mileage

Men and women serving in the National Guard of the United States are entitled to deduct National Guard travel expenses either as an adjustment to their gross income or as miscellaneous itemized deductions. It is important to know whether a particular travel expense deduction should be reported as an adjustment to gross income or as a miscellaneous itemized deduction subject subject to the 2 percent limit, because this directly impacts the end tax liability.

Instructions

1




Keeping a log of assignments and posting receipts to each assignment makes accounting easier.

Organize travel costs by dates served. Each instance should include the date of departure and the date of return. Associate all travel expense with each travel incident, including the costs of lodging and meals; number of miles driven on a personal vehicle; taxi fees; parking fees, ferry fees and tolls and all other incidental expenses.
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2




Assignment logs should have two categories: "More than 100 Miles" and "Less than 100 Miles."

Divide travel-related expenses that were incurred for the sole reason of serving in the National Guard into two categories: expenses incurred for travel more than 100 miles away from home and expenses incurred for travel less than 100 miles away from home.

3




Adjustments to gross income produce bigger savings to the taxpayer.

Report travel expenses incurred for the sole reason of serving in the National Guard as adjustments to gross income only if the travel was more than 100 miles from home. The adjustment to gross income is limited to the regular federal per diem rate which may be found in IRS Publication 1542, Per Diem Rates. The travel expenses are reported on Form 2106 or Form 2106-E as Unreimbursed Employee Business Expenses. Report any expenses in excess of the federal per diem rate on Schedule A of Form 1040 as a miscellaneous itemized deduction subject to the 2 percent limit.

4




Itemized miscellaneous deductions not exceeding 2 percent of the AGI are not deductible.

Report travel expenses incurred for the sole reason of serving in the National Guard as miscellaneous itemized deductions if the travel was less than 100 miles from home. Miscellaneous itemized deductions are subject to the 2 percent limit and are reported on Schedule A of Form 1040.