Each year, the IRS issues standard mileage rates used to calculate the deductible costs of operating vehicles for business, charitable, medical, or moving purposes.
As of January 1, 2019, the rates for vehicles used for the above purposes are:
- 58 cents per mile driven for business use
- 20 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
The IRS determines the standard mileage rate for business use based on an annual study of fixed and variable costs of operating a vehicle. The rate for medical and moving purposes is based on the variable costs.
Taxpayers have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
President of McIntosh & Associates Mindy McIntosh explains some last minute tax tips on Fox66 News with Jennifer Profitt.
* This information is not intended to be a substitute for specific, individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS.gov[i]