If you feel like gas prices have been edging up, it’s not your imagination. Prices have increased since last year and the IRS has taken notice. Beginning January 1, 2013, the standard mileage rates will increase slightly to:
- 56.5 cents per mile for business miles
- 24 cents per mile for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
No, the last line isn’t a mistake. It’s still 14 cents per mile for charity. While business miles and medical/moving miles are adjusted each year for inflation, the mileage rates for charity must be changed by Congress. And you know how effective Congress is… the rate hasn’t changed since the Clinton years.
Remember, however, that you aren’t required to use the standard mileage rates: you have the option of calculating the actual costs of operating your car. Whether you use the standard mileage rates or the actual costs, the devil is in the details. To substantiate your deductions, remember to keep good records.
