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IRS Mileage Rate

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IRS Mileage Standard Rate

The standard IRS mileage rate is used to calculate your tax deduction for miles driven.

You can claim a tax deduction for mileage using the standard rate or you can take the actual costs of operating a vehicle.

The standard deduction for mileage actually has three different rates. The rates vary depending upon the purpose of your driving.

The IRS Standard Mileage Rate

  • 56.5 cents per business mile driven
  • 24 cents per medical or moving mile driven
  • 14 cents per charitable mile driven for the use of a car, van, pickup truck, or panel truck

You may also include the costs of parking and tolls while using your vehicle for the purposes listed above. The mileage does not count when driving from home to work, or from work to home. The mileage does count from the point of arriving at your work place, and driving to extended training, or to meet with a client, etc.

You may not use the Standard Mileage Rates for;

  • Hired Vehicles
  • Vehicles Used as Equipment
  • Four or More Vehicles Used at the Same Time
  • A vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS)
  • After claiming a Section 179 deduction for that vehicle

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Actual Costs of Operating a Vehicle

You must keep accurate records of your mileage in a journal or a mileage log. You can also use mileage tracking software that works with the GPS system in your car or your mobile phone which will keep track of the mileage for you.

Examples of Actual Costs of Operating a Vehicle;

  • Gasoline
  • Oil
  • Tires
  • Repairs
  • Insurance
  • Tolls
  • Parking
  • Garage Fees
  • Registration Fees
  • Lease Payments
  • Depreciation Licenses

Vehicle Depreciation
If you are claiming deductions for vehicle depreciation, then the standard mileage rate must be reduced by the depreciation component which is 23 cents per mile for 2013. You cannot deduct tolls and parking fees if you have claimed vehicle depreciation.

Deducting the standard IRS mileage rate doesn’t have to be confusing with all of the help readily available for us to use to our advantage. TurboTax , and mileage tracking software will make preparing your income tax return a breeze. If you’re a little old school, there’s nothing wrong with a spiral notebook and pencil to track your mileage.