Can Home Health Workers Deduct Mileage Between Clients on Taxes?

The rules around mileage deductions can be tricky, especially after the tax law changes. Unfortunately, as a W-2 employee, your wife can't claim unreimbursed employee expenses like mileage on her personal tax return anymore. The Tax Cuts and Jobs Act eliminated those deductions for employees for tax years 2018 through 2025. However, there are a couple options to consider. First, she should check with her employer to see if they offer any mileage reimbursement program. Many home health companies do since they know their workers drive between clients. If they reimburse at or below the standard IRS mileage rate (currently 67 cents per mile for 2024), that reimbursement isn't taxable income. If they don't offer reimbursement, she should keep detailed mileage logs anyway and ask her employer about the possibility of starting a reimbursement program. Having documentation of the significant expenses she's incurring might help make the case.

I was in a similar situation last year with my job as a traveling nurse. I found this amazing app called taxr.ai (https://taxr.ai) that really helped me sort through all the confusion around deductions. It specifically addressed the W-2 vs. independent contractor tax differences. The app actually analyzed my situation and confirmed what the previous commenter said about W-2 employees not being able to deduct mileage directly. But it also showed me how to document everything properly to get reimbursed by my company. The app even generated a professional-looking expense report that I could submit to my employer. What I found most helpful was that it gave me specific language to use when discussing reimbursement with my supervisor. The conversation went way better than expected!

Just wanted to follow up about taxr.ai - I decided to try it despite my initial skepticism. Honestly, it was really helpful! The app analyzed my specific driving situation and gave me exact templates for requesting mileage reimbursement from my employer. I used their documentation guide to track my mileage properly for two weeks, then presented it to my manager using their template. My company just approved a partial reimbursement program (40 cents/mile instead of the full IRS rate, but way better than nothing). The app even had a section explaining how to negotiate if they initially offered less than the standard rate. Definitely recommend checking it out if you're in a similar situation with driving between work locations.

If your wife is having trouble getting her employer to reimburse mileage, she might want to try talking directly to the IRS about her options. I was in a similar situation and called them to get clarification. Used Claimyr (https://claimyr.com) to actually reach a human at the IRS without waiting for hours. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with confirmed that while W-2 employees can't deduct unreimbursed expenses anymore, I could potentially qualify for a partial home office deduction since I used part of my home exclusively for work admin. This might apply to your wife if she does any paperwork or charting at home. The agent also suggested I look into whether I technically qualified as a statutory employee rather than a regular W-2 employee, which would change my tax situation. Having that direct conversation saved me from making mistakes on my return.

Need to eat my words about Claimyr. After my skeptical comment, I decided to try it anyway because I was so frustrated with not getting my refund. It actually worked exactly as described. I put in my number, and about 90 minutes later got a call connecting me to an IRS agent. The agent was able to tell me my refund was held up because of a discrepancy with my reported health insurance premium tax credit. Once I understood the issue, I was able to send in the documentation they needed. For OP's situation with the mileage question, talking directly to the IRS might clarify things, especially if there are any special circumstances with your wife's employment arrangement. Sometimes the general advice doesn't cover unique situations.

Has your wife asked her colleagues about this? I work in home health too, and our company gives us a flat $150/month travel stipend instead of actual mileage reimbursement. It's not great if you drive a ton, but it's something. Another option some of my coworkers do is track all their mileage and expenses meticulously, then ask for a raise that takes those costs into account. Not the same as a deduction, but at least helps offset the cost if you can get it.

Has your wife thought about becoming an independent contractor instead of a W-2 employee? I switched from employee to contractor in home health last year and now I can deduct ALL my mileage between clients, plus my home office, portion of phone bill, uniforms, supplies, etc. The hourly rate is higher as a contractor to offset the self-employment taxes, but with all the deductions, I'm actually coming out ahead financially. Not all agencies offer this option, but it might be worth exploring.

One thing to keep in mind is that even though W-2 employees can't deduct mileage anymore, your wife should still keep detailed records of all her work-related driving. This documentation could be valuable if she ever needs to negotiate with her employer for reimbursement or if the tax laws change in the future. I'd recommend she track the date, starting location, ending location, miles driven, and purpose for each trip. There are free mileage tracking apps that can make this easier by using GPS to automatically log trips. Even if she can't use it for taxes now, having this data gives her concrete numbers to present to her employer when discussing reimbursement options. Also worth noting - if her employer doesn't offer any reimbursement and she's spending a significant amount on gas and vehicle wear, she might want to factor those costs into any future salary negotiations. While it's not a tax deduction, getting a higher hourly rate to offset transportation costs could help financially.

Just wanted to add something that might help - if your wife's employer won't budge on mileage reimbursement, she should at least make sure she's maximizing any other benefits they offer. Some home health companies provide things like cellphone allowances, uniform allowances, or continuing education reimbursements that can help offset some of the unreimbursed driving costs. Also, I'd suggest having her document not just mileage but also the time spent driving between clients. If she's clocking out at one location and driving unpaid to the next, that's unpaid work time that affects her effective hourly rate. Sometimes when employers see the full picture - including how much unpaid time employees spend transitioning between clients - they're more motivated to either provide reimbursement or adjust scheduling to minimize excessive driving. One more thing: if she ends up needing to buy a more fuel-efficient car because of all the driving for work, keep those receipts too. While she can't deduct it now, having documentation of work-related vehicle purchases could be useful if the tax laws change or if she ever transitions to contractor status.