{"id":6431,"date":"2023-12-26T06:14:00","date_gmt":"2023-12-26T06:14:00","guid":{"rendered":"https:\/\/www.irstaxapp.com\/?p=6431"},"modified":"2023-12-26T15:15:52","modified_gmt":"2023-12-26T15:15:52","slug":"2023-mileage-reimbursement-calculator","status":"publish","type":"post","link":"https:\/\/www.irstaxapp.com\/2023-mileage-reimbursement-calculator\/","title":{"rendered":"2024 &#038; 2023 Mileage Reimbursement Calculator"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><picture><source srcset=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/mileage-reimbursement-calculator-1200-x-630-px-1024x538.webp 1024w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/mileage-reimbursement-calculator-1200-x-630-px-300x158.webp 300w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/mileage-reimbursement-calculator-1200-x-630-px-768x403.webp 768w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/mileage-reimbursement-calculator-1200-x-630-px-150x79.webp 150w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/mileage-reimbursement-calculator-1200-x-630-px-750x394.webp 750w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/mileage-reimbursement-calculator-1200-x-630-px-1140x599.webp 1140w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/mileage-reimbursement-calculator-1200-x-630-px.webp 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" type=\"image\/webp\"><img src=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/mileage-reimbursement-calculator-1200-x-630-px-1024x538.png\" height=\"538\" width=\"1024\" srcset=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/mileage-reimbursement-calculator-1200-x-630-px-1024x538.png 1024w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/mileage-reimbursement-calculator-1200-x-630-px-300x158.png 300w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/mileage-reimbursement-calculator-1200-x-630-px-768x403.png 768w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/mileage-reimbursement-calculator-1200-x-630-px-150x79.png 150w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/mileage-reimbursement-calculator-1200-x-630-px-750x394.png 750w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/mileage-reimbursement-calculator-1200-x-630-px-1140x599.png 1140w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/mileage-reimbursement-calculator-1200-x-630-px.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" class=\"wp-image-7457 sp-no-webp\" alt=\"mileage reimbursement calculator\" decoding=\"async\" loading=\"lazy\"  > <\/picture><\/figure>\n\n\n\n<p>2023 &amp; 2023 <em>mileage reimbursement calculator<\/em> is based on the <a href=\"https:\/\/www.irs.gov\/newsroom\/irs-issues-standard-mileage-rates-for-2024-mileage-rate-increases-to-67-cents-a-mile-up-1-point-5-cents-from-2023\" target=\"_blank\" rel=\"noopener\">newly announced <\/a>standard mileage reimbursement rates for 2024, effective 1st January 2024. The new standard mileage rates  for 2024 and 2023 are given below  <\/p>\n\n\n\n<figure class=\"wp-block-table has-medium-font-size\"><table class=\"has-black-color has-text-color has-background\" style=\"background-color:#d3edfe\"><tbody><tr><td><strong>Mileage rates<\/strong><\/td><td><strong>202<\/strong>3<\/td><td><strong>202<\/strong>4<\/td><\/tr><tr><td>Business<\/td><td>0.65<\/td><td>0.67<\/td><\/tr><tr><td>Charity<\/td><td>0.14<\/td><td>0.14<\/td><\/tr><tr><td>Medical<\/td><td>0.22<\/td><td>0.21<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_62 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-662d9a61d0995\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-662d9a61d0995\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.irstaxapp.com\/2023-mileage-reimbursement-calculator\/#2023_Mileage_Reimbursement_Calculator\" title=\"2023 Mileage Reimbursement Calculator\">2023 Mileage Reimbursement Calculator<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.irstaxapp.com\/2023-mileage-reimbursement-calculator\/#What_is_mileage_reimbursement\" title=\"What is mileage reimbursement?\">What is mileage reimbursement?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.irstaxapp.com\/2023-mileage-reimbursement-calculator\/#IRS_rules_on_business_mileage_reimbursement\" title=\"IRS rules on business mileage reimbursement\">IRS rules on business mileage reimbursement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.irstaxapp.com\/2023-mileage-reimbursement-calculator\/#Accurate_record_keeping\" title=\"Accurate record keeping\">Accurate record keeping<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.irstaxapp.com\/2023-mileage-reimbursement-calculator\/#What_is_the_%E2%80%9Ccommuting_rule%E2%80%9D_exception\" title=\"What is the &#8220;commuting rule&#8221; exception?\">What is the &#8220;commuting rule&#8221; exception?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.irstaxapp.com\/2023-mileage-reimbursement-calculator\/#When_is_the_mileage_reimbursement_taxable\" title=\"When is the mileage reimbursement taxable?\">When is the mileage reimbursement taxable?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.irstaxapp.com\/2023-mileage-reimbursement-calculator\/#What_do_employers_need_to_know_about_standard_mileage_rates\" title=\"What do employers need to know about standard mileage rates?\">What do employers need to know about standard mileage rates?<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2023_Mileage_Reimbursement_Calculator\"><\/span>2023 Mileage Reimbursement Calculator<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<iframe loading=\"lazy\" width=\"100%\" height=\"1200\" layout=\"responsive\" sandbox=\"allow-scripts allow-same-origin\" src=\"https:\/\/gsheetpress.com\/calculator?id=1703599872872\">\n<\/iframe>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_mileage_reimbursement\"><\/span>What is mileage reimbursement?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Mileage reimbursement is a common practice in which an employer pays employees for the miles they drive while using their vehicle for work-related purposes. This practice can be a convenient and cost-effective way for an employer to provide transportation for their employees, as it allows the employee to use their vehicle rather than the employer having to provide one.<\/p>\n\n\n\n<p>For employees, mileage reimbursement that doesn&#8217;t exceed the IRS standard mileage rate isn&#8217;t considered taxable income. For employers, the reimbursed amount is often a deductible business expense. <a href=\"https:\/\/www.irstaxapp.com\/self-employment-deductions-tax\/\">Self-employed individuals<\/a> can also deduct business mileage on their tax returns, subject to IRS rules and record-keeping requirements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"IRS_rules_on_business_mileage_reimbursement\"><\/span>IRS rules on business mileage reimbursement<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Several factors to consider regarding mileage reimbursement include the Internal Revenue Service (IRS) rules and regulations. The IRS has established guidelines for mileage reimbursement in the Internal Revenue Code (IRC), specifically in <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/274\" target=\"_blank\" rel=\"noopener\">section 274(d).<\/a> These guidelines outline the requirements for the reimbursement to be tax-free for the employee and deductible for the employer.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Rule 1: reimbursement must be based on the actual cost of operating the vehicle<\/h3>\n\n\n\n<p>One of the key requirements for tax-free mileage reimbursement is that the reimbursement must be based on the actual cost of operating the vehicle. This includes expenses such as fuel, oil, and maintenance. The IRS has set a standard mileage rate for determining the deductible costs of operating a vehicle, which is currently (2023)  $0.65 per mile for business purposes.<\/p>\n\n\n\n<p>However, <strong>employers must not use the standard mileage rate to provide tax-free reimbursement<\/strong>. They can reimburse their employees based on the actual costs of operating the vehicle as long as they keep accurate records.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Rule 2: the vehicle must run for business-related travel<\/h3>\n\n\n\n<p>Another important requirement for tax-free mileage reimbursement is that the reimbursement must be for business-related travel. This means that the employee must drive the vehicle for work-related purposes, such as driving to a client meeting or running errands for the company. Personal travel, such as commuting to and from work, is not eligible for mileage reimbursement.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Accurate_record_keeping\"><\/span>Accurate record keeping<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Employees must keep accurate records of their business-related miles to claim a tax-free mileage reimbursement. This includes the dates, locations, and purposes of the trips. The employer may also require the employee to provide receipts for any expenses related to the use of the vehicle, such as fuel or maintenance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_%E2%80%9Ccommuting_rule%E2%80%9D_exception\"><\/span>What is the &#8220;commuting rule&#8221; exception?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>if an employee is required to use their vehicle for work-related travel frequently, they may be eligible for a tax-free reimbursement for their commuting miles. This is known as a &#8220;commuting rule&#8221; exception.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_is_the_mileage_reimbursement_taxable\"><\/span>When is the mileage reimbursement taxable?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Mileage reimbursement is considered taxable income for the employee if it is not based on the actual cost of operating the vehicle or if it is not for business-related travel. In these cases, the employee must report the reimbursement as taxable income on their tax return.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_do_employers_need_to_know_about_standard_mileage_rates\"><\/span>What do employers need to know about standard mileage rates?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For the reimbursement to be deductible for the employer, it must meet the requirements outlined in the IRC. This includes being based on the actual cost of operating the vehicle or using the standard mileage rate and being for business-related travel.<\/p>\n\n\n\n<p>In addition, the employer must keep accurate records of the mileage reimbursement they provide to their employees. This includes the dates, locations, and purposes of the trips, as well as any receipts for expenses related to vehicle use.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>2023 &amp; 2023 mileage reimbursement calculator is based on the newly announced standard mileage reimbursement rates for 2024, effective 1st January 2024. The new standard mileage rates for 2024 and 2023 are given below Mileage rates 2023 2024 Business 0.65 0.67 Charity 0.14 0.14 Medical 0.22 0.21 2023 Mileage Reimbursement Calculator What is mileage reimbursement? [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7457,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[54],"tags":[3839],"amp_enabled":false,"_links":{"self":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/6431"}],"collection":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/comments?post=6431"}],"version-history":[{"count":6,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/6431\/revisions"}],"predecessor-version":[{"id":7459,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/6431\/revisions\/7459"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/media\/7457"}],"wp:attachment":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/media?parent=6431"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/categories?post=6431"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/tags?post=6431"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}