Can the standard mileage deduction save me from taxes this year?
The mileage deduction for 17,500 miles is $8,489. If you are in the 15% tax bracket, this is a tax savings of $1,273. Plus, you will have reduced your income subject to self-employment taxes, for an additional savings of up to another $1,273. So, your figures are very possible. With this much mileage, the per mile deduction is usually more advantageous than actual expenses.
