IRS Mileage Rate
Keep track of your deductible mileage on your vehicle and you could see big savings on your tax return. Remember that you MUST keep accurate records in order for the deductions to be allowed. Listed below are the most common mileage deductions and how you can take advantage of them. A standard IRS mileage rate applies to each type of deduction. Parking fees and tolls for any of these purposes can be claimed in addition to the mileage.
Medical or MOVIng Expenses
You can claim a medical deduction of 23 cents per mile driven primarily for, and essential to, medical and dental care. This includes trips to the pharmacy to pick up prescriptions as well as visits to doctors, dentists, therapists, and so on.
Charitable Purposes
You can claim a charitable contribution deduction of 14 cents per mile for each mile driven for performing services for a charitable organization.
Job Search Purposes
Mileage expenses incurred while seeking new employment in the same occupation are deductible. The standard mileage rate is 55.5 cents per mile.
Business Miles
Mileage expenses incurred for business purposes if self-employed or at the request of your employer are deductible. If you work at two places in one day, you can deduct the expense of getting from one workplace to the other. The standard mileage rate is 55.5 cents per mile.
Educational Expense (for a job-related education)
If your education qualifies, you can deduct local transportation costs of going directly from work to school. If you are regularly employed and go to school on a temporary basis, you can also deduct the costs of returning from school to home. The qualifying job-related education rate is 55.5 cents per mile.
Moving Expense
If certain conditions are met, you can deduct 23 cents per mile for each mile driven for your move.
Record Keeping Requirements
It is important to keep accurate mileage records for claiming a mileage deduction. The records to keep are:
- Total miles for the year
- Mileage for each deductible use
- Times and dates
- Place/address
- Business purpose
- Charitable purpose
- Educational purpose
- Medical purpose
- Moving purpose
Liberty Tax® professionals are available for your tax needs. Please call your local Liberty Tax office for further information.
CLIENT CHECKLIST
What to bring to your Liberty Tax client interview:
PERSONAL INFORMATION FOR EACH
FAMILY MEMBER:
o Name
o Date of Birth
o Social Security Card
ALSO:
o Last Year’s Tax Return
o Valid Driver’s License
INCOME AND TAX INFORMATION:
o W-2’s
o Interest (1099-INT or substitute)
o Dividend (1099-DIV or substitute)
o Stock Sales (1099-B or Broker Statement)
o Self-Employment Income (1099-MISC or record of payments)
o Sale of a Personal Residence
o Rental Income
o Sale of any Business Assets
o Gambling or Lottery Winnings
o State Income Tax Refund
o Pension Income (1099-R, RRB-1099, CSA-1099)
o Any Estimated Taxes Paid
o Social Security or Railroad Retirement
o IRA or 401(k) Distribution (1099-R)
o Unemployment Compensation
DEDUCTIONS/ADJUSTMENTS:
o Medical Expenses
o Real Estate and/or Personal Property Taxes
o Mortgage Interest
o Charitable Contributions
o Employee Business Expenses
o Gambling Losses
o Moving Expenses
o Traditional IRA Contributions
o Certain Education Expenses
TAX CREDITS:
o Child Care Provider/Address and Social Security
Number or Employer Identification Number
o Adoption Expenses
o Retirement Savings Contributions