IRS Announces 2012 Mileage Rates
The IRS recently updated the standard mileage rates for business, medical, moving, and charitable miles. Taxpayers who spend money operating a vehicle for these purposes can opt to use the standard rates rather than saving all their individual receipts for gas, tolls, maintenance, and other related, actual expenditures.
The mileage rates for calendar year 2012 are:
- 55.5 cents per mile for business miles driven
- 23 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
The medical and moving rate has been reduced by 0.5 cents per mile from the most recent revision, which happened in July 2011.
“Tax Girl” Kelly Phillips Erb has a pretty good rundown of how the standard mileage rates work, including a tidbit about reimbursement that paid tax preparers frequently overlook:
Under the current rules, you can generally use the standard mileage rate whether or not you are reimbursed and whether or not any reimbursement is more or less than the amount figured using the standard mileage rate. I know that seems odd but it’s a quirky little provision that might save you a few tax dollars.
Tax law requires that taxpayers keep good records of their deductible mileage in order to be able to claim these deductions on their tax returns. This can be done in any way, as long as the records are accessible, accurate, and clearly readable. If you have a smartphone, there’s a number of cool mileage apps to help you track your travels throughout 2012.
If you need help figuring out how vehicle expenses can be deducted on your tax return for any year, contact IRS Problems Resolved to speak with one of our highly qualified and experienced tax preparers.
