Rural Newspaper Carrier and standard mileage rate

[Karen Lee]

When I say rural I mean RURAL. Here in Morton I am in the middle of this carrier's route 50 miles East and 50 miles West, 20 miles North and very little South.

This newspaper carrier has come in with $27,000. in gross income and approx. $10,000 in supplies and over 71000 miles. Two cars running everyday. Husband and wife team, one contract. No other income. What am I missing here? $34,000 in standard mileage allowance! The 71000 miles is very reasonable in this case. The bottom line seems unreasonable to me but shakes out.

Am I missing something? Can they actually have that big of a loss without a trigger?

Opinions please.

Karen

[GeneInAlabama]

I can't figure out why two people would work 365 days a year and wear out two cars and not receive anything for it. After paying for supplies and car expenses, there is no way that they could make any profit at all with $27,000 gross and $10,000 expenses and drive 71,000 miles. I know a lot of people run paper routes and there is very little money in it, but for a route that large, there must be more than $27,000 gross.

[Karen Lee]

From the looks of these people they may qualify for some sort of disability...and I try not to judge. I asked if there was any other income and the reply was negative...I have all the information in writing so I guess I'll go for it unless someone gives me another point of view.

Thanks

Karen

[MN2V]

I don't like "auditing" client's information, but maybe you could call the newspaper and check if they pay any mileage not included in W-2...

[lbbwest]

"Can they actually have that big of a loss without a trigger?"

Two different questions.