Gas Tops $4/Gallon, IRS Finally Ups Mileage Rate

2008 June 23
tags: , , , , ,
by Kelly
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It cost me nearly $50 to fill my tank this week - $50! And I drive a pretty fuel efficient car. Gas in my home town has hit $4.25/gallon for plain old standard gas. Yuck. Gas prices are just climbing and climbing.

At least there’s a small break: the mileage rate for business miles has finally been upped for tax purposes. The mileage rate will increase by eight cents to 58.5 cents a mile for all business miles driven as of July 1, 2008.

The mileage rate for deductible medical or moving expenses will increase by eight cents to 27 cents a mile.

Sadly, the rate for volunteering at charitable organizations is set by statute and remains at a pathetic 14 cents a mile. Congress, are you reading?

(Image: Newscom)

from → IRS news/announcements, charitable organizations, individual

11 Comments leave one →
2008 June 23
Kelvin Kao

I’m now paying 4.55 per gallon here in California. It also costs me about 50 bucks to fill up the tank (10 gallons). It’s getting pretty crazy. I remember long ago my dad used to be able to fill up the tank of his car with 20 bucks!

2008 June 24
Robert D Flach

I seem to recall in my college days filling up my VW bug for $3.00! Gas at a local “Merit” station in Hoboken was 33 cents per gallon and my car took about 9 gallons.

I am now paying $3.999 per gallon for “regular” here in the lovely Garden State.

Actually gas is probably the one thing that is not “most expensive” in NJ!

2008 June 24
Keith

Why is it that gas is the only import that no one feels is cheap? Why can’t we outsource to China or Mexico for fuel? (sic) Oh well…enough silliness. I know we can’t manufacture cheaper than Mexico or China, but could someone please tell me why we wouldn’t even try to give the Nation of Islam a little competition here in America? Is our technology so terrible that we really fear an oil spill off the Gulf Coast in Florida? The Cubans aren’t too worried about it. What if their oil rigs fail? Won’t that affect us just the same? Seems to me we’d better stop worrying so much about our environment and start worrying more about our economy!

2008 June 24
MarkSLindsey

Where are you getting these $50 gas bills? My 14 gallon tank, on a vehicle requiring 91 octane fuel, costs about $70 to fill up on Los Angeles prices. The next time you think you’re overpaying, I promise you that someone out there is getting gouged worse.

TaxGirl - saw your comment on The Juggle today. This is off topic, but as a should-be-doing-the-family-thing-but-procrastinating-because-I-don’t-want-to-yet 20something, I’m WAY too scared to think about children, and leaving them home alone is a whole other story. I’m an only child, and I was left home alone frequently with no complications. Then again, I didn’t cause any trouble.

2008 June 24
Kelly

MarkS,
Oh, I know we’re doing better than most, gas-wise, so I’m only tongue-in-cheek. We rarely hit 15k per year in our Forester. At $4/gallon, we usually fill up at about $50.
As for The Juggle, thanks for the heads up, but that’s not me, some other taxgirl… My kids are 6, (almost) 4 and 2 - it will be awhile before I leave them at home alone. A long, long while.
And psst, I know it’s to each his or her own but I think 30 is a good time to think about kids - no need to rush it in your 20s if you don’t want! ;)

2008 June 24
MarkSLindsey

Yeah, I’d feel much better about that lol. Thanks so much for the reply :)
To be honest, I no longer use my car to commute to work. I found an apartment next to the under-used LA subway and I now just walk to work (job is next to 7th/metro exit). Commuting cost is down to $12.50 / week now. Never thought I’d be excited about public transit.

Those weekend trips, though, can sure come at a premium.

We should find the other taxgirl - how dare she steal your pseudonym!

2008 June 24
becky

I just filled up my Honda Accord a couple of days ago. Paid $65 for the tank. Ouch! I think that SoCal is just about the most expensive in the country right now.

2008 June 26
Tyler

We drive about 700 to 900 miles per week as auto damage appraisers and evan 58.5 cents per mile wont cover wear and tear much less the gas to go from Reno to say Alturas Ca. Gas prices have hit $4.29 per gallon for 87 octane in Reno and if we have tio fill up again for example in Alturas Ca. the price hits $4.59 per gallon. So if the price of everything that depends on gasoline is going up to reflect the increase, then why not billable miles to some of the richest companies in the country? (insurance companies)………

2008 June 27
David Ross

The IRS just raised the Standard Business Mileage Rate to 58.5 cents per mile. But why can volunteers who use their own cars for charitable service only deduct 14 cents per mile from their Federal income taxes? While the business rate has increased steadily, the charitable rate has not increased in ten years.

With gas prices at $4 per gallon, it costs between 50 and 70 cents to drive a car one mile. As a result, programs like Meals-on-Wheels are facing critical volunteer shortages. And it’s happening throughout the country.

US H.R.2020 would raise the charitable mileage rate from the current 14 cents per mile to the business rate (currently 58.5 cents). The bill would eliminate the disincentive for charitable volunteerism and grant relief to organizations that rely on them.

You can help. Contact your members of Congress. Urge their support for H.R.2020.

Action Alert:
http://capwiz.com/pano/issues/alert/?alertid=11426646&type=CO&show_alert=1

For more information: http://www.pano.org/publicpolicy/publicpolicy-irs_CRR.php

2008 June 28
Kelly

Thanks for the link!

2008 July 24
mileage rate irs 2008

[...] standard gas. Yuck. Gas prices are just climbing and climbing. At least there??s a small break: thehttp://www.taxgirl.com/gas-tops-4gallon-irs-finally-ups-mileage-rate/IRS raises mileage rate for tax deductions NewsdayThe Internal Revenue Service, citing the drain [...]

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