Taxpayer asks:
I understand mileage rates changed in the middle of the year by the IRS. Can you offer the mileage rates for medical and for service with a non-profit.
Taxgirl says:
The craziness in gas prices this year did lead to a complicated mileage arrangement for 2008. The IRS normally updates mileage only once per year.
For 2008, compute your mileage deductions as follows:
Business mileage
January 1 – June 30, 2008: 50.5 cents per mile
July 1 – December 31, 2008: 58.5 cents per mile
Charitable mileage
January 1 – December 31, 2008: 14 cents per mile
Medical/moving mileage
January 1 – June 30, 2008: 19 cents per mile
July 1 – December 31, 2008: 27 cents per mile
I know what you’re thinking: what gives with the charitable rates? Those rates are, unfortunately, set by statute and cannot be adjusted by the Treasury. If you’re annoyed that the rate hasn’t changed for the last several years (and really, you should be), let your Congressional officials know.
Check back later in the day for a discussion of what qualifies as a mileage deduction for business expenses!
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
Have a question? Ask the taxgirl! – Now on Facebook!
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)
Taxpayer asks:
What is the rule for claiming mileage for work on your taxes? I thought you could only claim it if your job sends you somewhere besides your normal daily commute, like if you have to travel to attend a meeting. My husband says that everybody on his job claims mileage for every travel to and from work.
Taxgirl says:
Your husband is mistaken. Commuting mileage expenses are not allowable as deductions.
Mileage is generally allowed, as you stated, for travel which is job-related but not a daily commute (i.e. mileage to a conference would be allowable).
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
Have a question? Ask the taxgirl!
–
This post is part of the b5media Business Channel Great Blog Off! Find out more about the Blog Off here.
The Business Channel is supporting Accion International for the Great Blog Off. You can make a donation directly to Accion. Donations are, of course, tax deductible.
