Version User Scope of changes
Mar 19 2009, 12:47 PM EDT (current) bicycle1812 272 words added
Mar 19 2009, 12:47 PM EDT bicycle1812

Changes

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The rate for business travel has recently increased. The allowable deduction was 48.5 cents per mile for 2007. Due to the current state of the economy the IRS has offered an even higher tax break that will cover mileage deductions from July 1st, 2008 through December 31st, 2008. The rate for business purposes for this six month window will be 58.5 cents per mile.

The rate for moving or medical purposes for this six month window will be 27 cents per mile. The deduction for charitable travel will remain the same. The reasons for this increase are the higher price with fuel and the increased price of vehicles. This will just be a temporary deduction to help individuals with an immediate tax break. This increase will offer the biggest cents per mile deduction that we have ever seen.

Standard Mileage Deduction Amounts
  • 58.5 Cents Per Mile For Business
  • 14 Cents Per Mile For Charitable
  • 20 Cents Per Mile For Medical
  • 20 Cents Per Mile For Moving
Tax payers always have the option to calculate the actual cost of operating their vehicle instead of just deducting the miles driven. If you drive a large amount of miles then it is recommended that you take the standard mileage deduction. You can also deduct parking fees and tolls. If you must travel to school to receive education or training that is directly related to your job then you may also deduct those miles driven at the current business deduction rate.

To learn more about mileage deduction rules please visit TurboTax Online. TurboTax online offers free tax software to help you maximize your mileage reimbursement deductions.