What Mileage Is Allowed as a Tax Deduction?
U.S. taxpayers may claim a mileage deduction for certain types of travel. Due to continual changes in the cost of living, fluctuations in gasoline prices, and the perennial revisions in the tax code, the standard mileage deduction rates vary from tax year to tax year. However, what types of mileage are allowed as deductions remains fairly constant.
Other People Are Reading
-
Types
-
For U.S. taxpayers filing individual federal taxes that include Schedule A, Itemized Deductions with Form 1040, a deduction for mileage relating to medical care, charitable work, moving expenses, and travel related to caring for rental properties may be applicable. In addition, business owners, including farmers and self-employed individuals, are entitled to deduct mileage pertaining to relevant business travel.
Size
-
Standard mileage rates for business-related use of a vehicle and mileage necessary to care for rental property have been historically higher than comparable rates for travel related to medical care, a job-related move, and reimbursement for charitable work. For example, for the 2010 tax year, the standard mileage rate was 50 cents per mile for business travel, 14 cents per mile for charitable work, and 16.5 cents per mile for medical and moving purposes.
-
Features
-
When claiming a deduction for mileage under pertinent Internal Revenue Service codes, a taxpayer multiplies the number of miles driven by the applicable rate, (business, moving, medical, charitable) and then may add costs paid for parking and tolls related to the same trip. This total cost may be recorded as "mileage."
Considerations
-
When claiming the standard mileage deduction for business-related expenses, including those of self-employed taxpayers, the information is recorded and reported to the IRS on Schedule C, Profit or Loss From Business, of Form 1040. For farmers, the pertinent form is Schedule F, Profit or Loss From Farming. When claiming the deduction as an expense related to rental property, the information is filed on Schedule E, Supplemental Income and Loss, with federal tax Form 1040. For others, the information is reported on Schedule A, Itemized Deductions.
Potential
-
A mileage deduction as it pertains to moving expenses pertains only to a move necessitated by the taxpayer's employment. In addition, the new place of employment must be a minimum of 50 miles farther than the taxpayer's previous commute. However, this use of the mileage deduction covers moving costs, not commuting expenses once a residence is established. Under the IRS code, commuting to and from a place of employment on a regular basis is considered personal expenses, and the IRS stipulates that this holds true regardless of how far the commute may be.
-
References
- Internal Revenue Service: Instructions Form-1040
- Internal Revenue Service: Publ 463 Travel, Entertainment, Gift, and Car Expenses
- Internal Revenue Service: Instructions for Form 4562, Depreciation and Amortization
- Internal Revenue Service: Form 3903 Moving Expenses
- Internal Revenue Service: Publ 502 Medical and Dental Expenses
- Internal Revenue Service: Standard Mileage Rates
- Photo Credit Jupiterimages/Photos.com/Getty Images
