Well, the tax code changed a bit for 2008 for mileage. There are two tiers that are divided by a cutoff date in June or July due to the escalation of fuel costs. Plus, it all depends on how many miles you can document and how much you got from your employer. I drove 21,000 miles delivering, for example, so in my case it may make sense. If you did it part time, it is likely that you would not exceed the standard deduction if this is your only itemized deduction. I can also document my repairs and maintenance as well as total cash outlay for fuel and insurance, so I will calculate it both ways to see which is bigger. To do that though, you can only deduct the percentage of your yearly miles that were used for work. So, if you used the car 65% of the time for work, 65% of the costs can be deducted, less the amount paid in mileage by your employer. It may also be wise NOT to claim your miles and keep the data as an ace up your sleeve, in case the tax man decides to arrange a friendly meeting to assess your math. This way, you potentially could offset some or all of the underclaimed tips you may be assessed. It is also wise to not give the data out if you did not claim any tips. The miles driven may flag your return if you claimed little to nothing.
