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!
(Note: Under the TCJA, many taxpayers can no longer deduct moving or business mileage for the tax years 2018-2025. Check with your tax pro for more information.)
Before you go: be sure to read my disclaimer. Remember, I’m a lawyer and we love disclaimers.
If you have a question, here’s how to Ask The Taxgirl.
You might want to mention that effective 1/1/09 the rate dropped back to 55 cents per mile.
Thanks! I’m going to do a follow-up piece later today – my inbox is filled with mileage-related questions.
Hi…what if you work at a non-profit and incur mileage, should it be reimbursed at the business rate or something else?
If you’re driving for a work-related purpose (and not for purposes of commuting), nonprofit or for profit, use the business rate.