Each year, the Internal Revenue Service issues its optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes (compared to deducting actual expenses, which would require maintaining receipts, etc.).
Beginning on Jan. 1, 2009, the standard mileage rates for the use of a vehicle will be:
- 55¢ per mile for business miles
- 24¢ per mile for medical or moving purposes
- 14¢ per mile in service of charitable organizations
In order to claim these amounts as deductions on your tax return, be sure to keep a current log of all miles driven for these purposes. If you fail to substantiate your mileage, you will likely lose an income tax deduction.
