The Internal Revenue Service (IRS) has issued the 2019 standard mileage reimbursement rates. Beginning on January 1, 2019, the standard mileage rates for the use of a car, van, pickup or panel truck will be:
- 58 cents per mile for business miles driven (up from 54.5 cents in 2018)
- 20 cents per mile driven for medical or moving purposes (up from 18 cents in 2018)
- 14 cents per mile driven in service of charitable organizations (currently fixed by Congress)
These are the rates are effective for deductible transportation expenses paid or incurred on or after January 1, 2019, and for mileage allowances or reimbursements paid to, or transportation expenses paid or incurred by, an employee or a charitable volunteer on or after January 1, 2019
How to Calculate Deductible Expense Based on Mileage Rates ?
In order to compute the deductible business, moving, medical or charitable expense, you simply multiply the standard mileage rates by the number of miles traveled. Let’s say, for example, that you drive 35,000 miles in 2018. Of those miles, 15,000 are for personal use and 18,000 are for charitable purposes and 10,000 are for medical purposes. Then , the deductible expense would be as under :
- 15,000 personal miles x 0 = 0
- 18,000 charitable miles x .14 = $2520
- 10,000 medical miles* x .20 = $2,000
Thus , total deductible mileage related expenses would be $4,520 plus additional related charges such as parking fees and tolls. Please note that taxpayers also have the option of deducting actual expenses rather than using the standard mileage rates—though admittedly, that’s a lot more work.
What are 2018 federal mileage rates ?
Please note that for filing tax year 2018 return, you need federal mileage rates for 2018 which is given below :
- 54.5 cents per mile for business miles driven, up from 53.5 cents for 2017
- 18 cents per mile driven for medical or moving purposes, up from 17 cents for 2017
- 14 cents per mile driven in service of charitable organizations
Please refer IRS Notice 2018-03 providing the 2018 business mileage reimbursement rate , standard medical and charitable mileage rates.
Check this new Mileage Reimbursement Calculator