Don’t forget to claim your IRS Mileage Rate tax deduction. Another great advantage to itemizing your tax return is the IRS mileage rate deduction you can receive from claiming your vehicle mileage. There are many reasons that your mileage may be tax deductible.
Mileage deduction IRS rate
You can choose to take these optional IRS standard mileage rates if your are an employee, self-employed, and all other taxpayers if you have vehicle operating costs that fall into tax deductible categories.
What type of vehicle mileage are tax deductible?
Miles Driven for Business
Medical Travel Mileage
Moving Travel Mileage
Servicing for Charitable Organization Mileage
How much can I deduct for business vehicle mileage
50 cents per mile for business
14 cents per mile for charitable
16.5 cents per mile for medical
16.5 cents per mile for moving
We can expect to see this amount for the IRS mileage tax deduction rate to change from year to year. The mileage deduction rate for business purposes is 50 cents per mile.
The rate for moving or medical purposes is 16.5 cents per mile. The vehicle mileage tax deduction for charitable travel will remain the same staying at 14 cents per mile.
The IRS standard mileage rate for business, moving, and medical travel comes from an annual study that is done to determine the costs of operating a vehicle, and of the fixed and variable costs of operating a vehicle. The IRS will usually hire an outside company to complete this study.
The study is conducted by an independent contractor by the name of Runzheimer International.
If you have any questions about filing your taxes online or online tax help, please contact us at onlinetaxpros.com.