Do you use your personal vehicle for business purposes when you’re on the clock? Or do you use your vehicle medical, moving or charitable purposes? If so, did you know that you can claim a tax deduction on the mileage you rack up?
For years, the IRS has issued optional standard mileage rates for taxpayers, providing guidelines for what individuals can claim as it relates to the use of their personal vehicles. Several weeks back they issued 2014 standard mileage rates. Effective Jan. 1, 2014 the rates are as follows:
- 56 cents per mile when driving for business purposes
- 23.5 cents per mile when driving for medical or moving purposes
- 14 cents per mile when driving in service for charitable organizations
What Changed Between 2013 and 2014?
You may be wondering how the rates changed from last year to now. All of the rates, except for the charitable rate, decreased by half a cent from last year’s rates. The charitable rate is always based on statute.
If you’d rather not use the standard mileage rates, you also have the option to calculate the actual costs of using your vehicle. If you choose this route, you will not be able to claim business mileage rates.
Standard Mileage Help
If you need some assistance in figuring out how to appropriately claim a standard mileage rate, contact Rea & Associates. Our team of Ohio tax professionals can consult with you on how to best calculate these rates and determine what rates you are eligible for.
Author: Joe Popp, JD, LLM (Dublin office)