Business Mileage Rate Tax Deductions
Another great advantage to itemizing your tax return is the deductions you can receive from claiming your vehicle mileage. There are many reasons that your mileage may be tax deductible.
You can choose to take these optional standard rates if you are an employee, self-employed, and all other taxpayers if you have vehicle operating costs that fall into tax deductible categories.
What is Deductible?
Miles Driven for Business
Medical Travel Mileage
Moving Travel Mileage
Servicing for Charitable Organization Mileage
How Much Can I Deduct
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
The rate for business travel has recently decreased. It was previously at 55 cents per mile for 2009. Due to the current state of the economy we can expect to see this amount for the IRS mileage rate deduction 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 deduction for charitable travel will remain the same staying at 14 cents per mile. The standard rate for business, moving, and medical comes from an annual study that is done to determine the costs of operating a vehicle. The IRS will usually hire an outside company to complete this study.
To learn more about mileage tax deductions please visit TurboTax Online. TurboTax Online offers Free Tax Calculators to help you maximize your deductions.
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