MJM Income Tax

𝙒𝙝𝙮 𝙞𝙨 𝙜𝙚𝙩𝙩𝙞𝙣𝙜 𝙖 𝙗𝙞𝙜 𝙧𝙚𝙛𝙪𝙣𝙙 𝙖 𝙗𝙖𝙙 𝙩𝙝𝙞𝙣𝙜?

We all get excited about a refund becuase it feels like “extra money.”

But sometimes a big refund actually means you paid more in taxes than you needed to throughout the year.

Say you got a $3,000 refund because too much in taxes was being given to the IRS. But could that $250 per month have been available to you during the year instead?

If your withholding could be adjusted, would you rather…
A) Get a larger refund at tax time
B) Have more money available in each paycheck
C) Aim for as close to break-even as possible

𝘾𝙖𝙣 𝙄 𝙖𝙘𝙩𝙪𝙖𝙡𝙡𝙮 𝙜𝙚𝙩 𝙖 𝙧𝙚𝙛𝙪𝙣𝙙 𝙤𝙣 𝙩𝙖𝙧𝙞𝙛𝙛𝙨 𝙄 𝙖𝙡𝙧𝙚𝙖𝙙𝙮 𝙥𝙖𝙞𝙙?

Yes, you can get a refund on a tariff you already paid BUT only if you have legal standing with Customs.

In trade, it doesn’t matter who paid the bill; it matters who is listed as the Importer of Record (IOR). To see if you’re eligible for a recovery, check your Entry Summary (CBP 7501):
• Your EIN is listed: You own the claim and can pursue the refund directly.
• A Broker or Carrier (UPS/FedEx) is listed: They hold the legal standing. You must coordinate through them to access the funds.

Not sure if your entries are still open for a claim? Send me a DM and I can help you figure out if your refund window is still open.

𝗛𝗼𝘄 𝘀𝗵𝗼𝘂𝗹𝗱 𝗜 𝘁𝗿𝗮𝗰𝗸 𝗺𝗶𝗹𝗲𝘀 𝗶𝗳 𝗜 𝗱𝗿𝗶𝘃𝗲 𝗳𝗼𝗿 𝘄𝗼𝗿𝗸?

You have two main options: the standard mileage method or the actual expense method.

The 𝘀𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗺𝗶𝗹𝗲𝗮𝗴𝗲 method is usually simpler. You track your business miles, then multiply them by the IRS mileage rate.

The 𝗮𝗰𝘁𝘂𝗮𝗹 𝗲𝘅𝗽𝗲𝗻𝘀𝗲 method takes more recordkeeping. You track costs like gas, insurance, repairs, and maintenance, then deduct the business-use percentage.

So if 75% of your vehicle use is for business, you may be able to deduct 75% of your eligible vehicle expenses.

The important thing here: 𝘉𝘦𝘵𝘵𝘦𝘳 𝘳𝘦𝘤𝘰𝘳𝘥𝘴 𝘨𝘪𝘷𝘦 𝘺𝘰𝘶 𝘣𝘦𝘵𝘵𝘦𝘳 𝘰𝘱𝘵𝘪𝘰𝘯𝘴.

And if you own the car, your first-year choice can affect what methods are available later.

If you're tracking miles in your business, tell us which method you prefer and why in the comments below.