Each year standard mileage rates for business travel, medical driving, moving mileage and mileage rates for charitable driving are set by the IRS.
Mileage Type |
2020 |
2021 |
2022 |
---|---|---|---|
Business miles | 57.5¢ per mile | 56¢ per mile | 58.5¢ per mile |
Medical and moving miles* | 17¢ per mile | 16¢ per mile | 18¢ per mile |
Charitable miles | 14¢ per mile | 14¢ per mile | 14¢ per mile |
* Miles deducted as a moving expense are limited to a permanent change of station for military purposes only.
Too often this deduction is overlooked because proper documentation was not followed. Here are a few tips to ensure you receive the full benefit of this tax deduction.
This log is required to ensure your deduction is not disallowed during the course of an audit. Please make sure the business/charitable/medical purpose, date and distance is clearly noted. Our Alloy Silverstein CPAs recommend MileIQ.
These can often be deducted in addition to the standard mileage rate.
Most employers will reimburse you for business mileage at the approved rate, but many employees fail to ask for reimbursement. Remember, your employer can deduct this reimbursed expense on their tax return as well.
Even though you need to surpass a percent of your income prior to taking medical expenses as an itemized deduction, still keep track of qualified medical miles. It often only takes one major medical bill to make all your other excess medical expenses deductible.
Commuting miles to and from work are not deductible. However, if you stop off at a supplier first, then the mileage from the supplier to your workplace is a deductible expense.
This deduction is one of the most often overlooked deductions. Do you drive for Meals on Wheels or for a school function? Do you volunteer as a coach for a non-profit sporting group? These miles add up over time and are often not properly documented.
Need assistance? Turn to your Alloy Silverstein CPA this tax season and every other month of the year.
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