How are mileage deductions handled on 1099-MISC forms?
If you are an independent contractor then all the compensation that the company paid you for is income to you. You should report the income paid to you on the 1099-Misc on a Schedule C, and then you would also be able to claim the mileage that you were paid for as an expense under auto/truck expenses. The mileage rate for 2006 was .445 per mile. You would be only able to claim the actual business miles that you drove for the contractual work. And as for it being more beneficial for you to simply take a deduction from the IRS instead of being paid by the contractor for mileage, unless the income tax rate ever goes up to 100% tax you’re better off being paid by the contractor.
