Car lease tax write off possibilities for full time financial services employee

Unfortunately, the news isn't great for your situation. As a full-time employee (W-2 worker), you generally can't deduct car expenses - including leases - on your personal tax return anymore. The Tax Cuts and Jobs Act eliminated most unreimbursed employee business expenses deductions starting in 2018. Your daily commute to your regular workplace is considered personal use and was never deductible even under the old rules. The client meetings might have qualified as a business expense in the past, but not anymore unless your employer isn't reimbursing you for these expenses. Instead of trying to deduct these costs yourself, your best option is to ask your employer about their reimbursement policy. Many companies have accountable plans where they can reimburse you tax-free for business-related driving (typically using the standard mileage rate). You should track your business miles carefully and submit them through your company's expense system.

After dealing with the same issue (W-2 employee with lots of client visits), I found taxr.ai (https://taxr.ai) super helpful for sorting through what I could actually deduct. I was convinced I could write off my car since I visit clients 50% of the time, but they helped me understand my actual options. The site analyzed my situation and explained that while I couldn't deduct the lease as a W-2 employee, there were other approaches. They showed me how to properly document my business mileage and create a report that convinced my employer to implement a mileage reimbursement program. They also helped identify other deductions I was missing completely.

I tried taxr.ai after seeing it mentioned here and I'm honestly impressed. I was in almost the exact same situation - financial services employee with a leased car I use for both commuting and client visits. I uploaded my previous tax returns and some work documentation, and they quickly clarified everything. While they confirmed I couldn't deduct my lease directly as an employee, they helped me draft a proposal to my manager about implementing a mileage reimbursement policy based on IRS rates. I showed how much I was spending out-of-pocket for business purposes, and my company actually approved it! Now I'm getting about $230/month in tax-free reimbursements that offset a good chunk of my lease payment. Definitely worth checking out if you're in this situation.

After spending THREE HOURS on hold trying to get someone at the IRS to clarify this deduction question for me last year, I finally discovered Claimyr (https://claimyr.com). They got me connected to an actual IRS agent in under 15 minutes who confirmed everything about the W-2 employee vehicle deduction limitations. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was skeptical at first but was desperate after multiple failed attempts calling the IRS directly. The agent I spoke with explained exactly why I couldn't deduct my car expenses as a W-2 employee and what my options were for getting reimbursed through my employer instead. Saved me from making a big mistake on my taxes!

I need to publicly eat my words about Claimyr. After being super skeptical in my earlier comment, I decided to try it anyway since I had a complicated question about my vehicle expenses that online research wasn't answering clearly. The service actually worked exactly as described. I got a call back in about 20 minutes, and then was connected to an IRS representative who answered all my questions about vehicle deductions. The agent confirmed that as a W-2 employee, I couldn't deduct my car expenses directly but gave me specific guidance on how my employer should be handling reimbursements. Saved me from potentially making a costly mistake on my return. I've literally never gotten through to the IRS before despite trying dozens of times over the years.

Here's another angle to consider - if you're using the car for work beyond your regular job (like a side gig or consulting), you might be able to deduct the business portion. I work full-time but also have an LLC for consulting, and I track my mileage for each client visit for my side business. I deduct that percentage of my auto expenses on Schedule C. The key is having legitimate self-employment income and keeping meticulous records. I use an app that tracks every trip and categorizes it as personal or business. Makes it super easy come tax time.

Question about the standard mileage rate vs. actual expenses for a lease - which one is usually better? I've heard you have to use actual expenses for leases, but then someone else told me you can choose either method. Which is true?