How do I properly claim mileage deductions for an S Corporation when tax software doesn't have a mileage section?

The second CPA is partly right but didn't give you the complete picture. When you have an S Corp, you can't deduct business mileage on your personal return using Schedule C. That's because you're an employee of your S Corp receiving W2 income, not a sole proprietor (despite your original LLC status). However, the S Corp itself CAN deduct business mileage expenses! You have two options: 1. Your S Corp can reimburse you for business mileage using an accountable plan at the standard mileage rate. This reimbursement is deductible by the S Corp as a business expense but isn't taxable income to you. 2. If your tax software doesn't have a specific mileage entry, you can enter the calculated mileage deduction amount (miles x standard rate) as a general business expense on your S Corp return. Just make sure to label it clearly as "mileage expense" and keep detailed mileage logs. The key is that the S Corp claims the deduction, not you personally on Schedule C. Make sure you have good documentation of your business miles though - date, starting/ending locations, business purpose, and total miles for each trip.

I dealt with this exact issue last year and almost lost thousands in deductions until I found taxr.ai (https://taxr.ai). Their system reviewed my S Corp filings and mileage logs and found I was doing it all wrong. Apparently, there's a specific way to handle mileage for S Corps that most tax software misses. They showed me how to properly document my mileage as a reimbursable business expense for my S Corp instead of trying to claim it on my personal return. Their system even generated the proper documentation I needed to support the deduction if I ever get audited. I was amazed at how much more I could legitimately deduct beyond just mileage!

I was skeptical about taxr.ai at first but decided to give it a try with my S Corp taxes. I'm honestly surprised how well it worked. It immediately flagged my incorrect mileage deduction approach and explained exactly how to handle it properly. The system showed me how to document my mileage as a reimbursable business expense on my S Corp return, which my tax software hadn't made clear at all. It also generated a compliant mileage log template that satisfied IRS requirements. My tax liability dropped by over $2,300 once I fixed everything! Definitely worth checking out if you're confused about S Corp deductions.

I had a similar nightmare with S Corp mileage deductions last year. After getting nowhere with my CPA and spending hours on hold with the IRS, I finally used Claimyr (https://claimyr.com) to actually talk to a real IRS agent. Check out how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed that mileage deductions MUST be taken on the S Corp return as a business expense, not on your personal return with a Schedule C. They explained I should have my S Corp reimburse me using an accountable plan, then deduct that amount on the business return. Saved me from making a big mistake and possibly being flagged for audit. Talking to an actual IRS agent gave me peace of mind that I was handling it correctly.

I hate to admit when I'm wrong, but I have to update my skeptical comment. After that frustrating exchange, I tried Claimyr myself for a complicated payroll tax issue I'd been trying to resolve for a client. I've literally spent 20+ hours on hold with the IRS over the past month trying to fix this issue. Used Claimyr yesterday and was connected to a real IRS agent in about 40 minutes (while I worked on other returns). The agent cleared up the confusion immediately and we now have a pathway to resolve the issue. For S Corp owners with mileage questions - definitely worth using to get a definitive answer directly from the IRS rather than conflicting CPA opinions. Can't believe I wasted so many billable hours on hold before finding this.

Ok, coming from an actual tax preparer who specializes in small business: the mileage issue for S Corps is actually really simple but most software doesn't handle it well. S Corp owner-employees have TWO options: 1. Your S Corp can reimburse you for business mileage (58.5 cents/mile for 2023) through an accountable plan. You submit expense reports with your mileage logs, the S Corp pays you, and the S Corp deducts it as a business expense. You don't report this reimbursement as income. 2. You can NOT deduct unreimbursed employee expenses anymore (including mileage) on your personal return since the 2017 tax law changes eliminated those deductions. So CPA #2 was closer to being right. You can't use Schedule C for this since you're not self-employed - you're an employee of your S Corp. The deduction belongs to the business, not you personally.

One thing nobody's mentioned - if you drive a LOT for business, sometimes the actual expense method is better than the standard mileage rate. With an S Corp, you can have the company own the vehicle or you can own it and get reimbursed for actual expenses. Has anyone used TurboTax for S Corps? Does it handle this well?

This is exactly why I switched from doing my own S Corp taxes! The mileage deduction issue drove me crazy for years. I was making the same mistake as CPA #1 suggested - putting everything on Schedule C on my personal return. What finally clarified everything for me was understanding that once you elect S Corp status, you become an employee of your own corporation. Employees can't deduct unreimbursed business expenses anymore (thanks to the 2017 tax changes), so the mileage deduction has to come from the business side. The solution that worked for me: I set up a simple accountable plan for my S Corp (literally just a one-page document), track all my business miles in a spreadsheet, and submit monthly expense reports to myself as the business owner. Then I reimburse myself at the standard rate and deduct that reimbursement as a business expense on the S Corp return. My tax software (I use FreeTaxUSA Business) doesn't have a specific mileage field either, so I just enter the total calculated amount under "Other Deductions" with "Mileage Reimbursement" as the description. Been doing it this way for three years now with no issues. The key is having that paper trail - the accountable plan, detailed mileage logs, and expense reports showing you properly requested reimbursement from your S Corp before taking the deduction.