One Big Beautiful Bill (OBBBA)
Quick definition
Federal legislation that made permanent the suspension of unreimbursed employee expense deductions originally introduced by the TCJA.
The One Big Beautiful Bill (OBBBA) made permanent the suspension of unreimbursed employee expense deductions that the Tax Cuts and Jobs Act had set to expire. For W-2 employees, that means the inability to deduct work mileage is no longer a temporary rule.
Why it matters for drivers
Before OBBBA, some W-2 drivers held out hope the unreimbursed-expense deduction would return when the TCJA provisions expired. It will not. The only remedy for an employee is mileage reimbursement from the employer.
Self-employed drivers are unaffected
OBBBA targets the employee deduction. If you file Schedule C as an independent contractor, your business mileage deduction is intact.
Related terms
Tax Cuts and Jobs Act (TCJA)
The 2017 federal tax law that suspended unreimbursed employee expense deductions, removing the ability of W-2 employees to deduct work mileage on federal returns.
Mileage Reimbursement
Payment from an employer to a worker for using their personal vehicle for work.
Schedule C
The federal form self-employed workers use to report business income and expenses, including the mileage deduction.
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