For Immediate Release
December 12, 2011
|CONTACT: Martha O’Gorman
Chief Marketing Officer
(800) 790-3863 ext. 8022
LIBERTY TAX COVERS BEST PRACTICES FOR DEDUCTING MILEAGE
IRS Has Announced the 2012 Mileage Rates
(Virginia Beach, VA) Liberty Tax Service encourages taxpayers not to cheat themselves out of tax deductible mileage by failing to keep good records. Carefully documenting all possible deductible mileage can pay off at tax time. Mileage driven for business, medical, charitable, moving, and educational purposes may be deductible. Here are the mileage rates that are in effect for 2012 and 2011:
Business mileage-Mileage driven for business purposes for those who are self-employed, or at the request of an employer is deductible. Those who work at two places in one day, can deduct the expense of getting from one workplace to the other. Students taking classes that are work-related can deduct mileage to and from class at the business rate.
- 51 cents per mile from January 1- June 30, 2011
- 55.5 cents per mile from July 1- December 31, 2011
- 55.5 cents per mile for 2012
Medical or moving mileage-This includes miles driven to and from doctors and dentists, and trips to the pharmacy to pick up prescriptions. Taxpayers who have moved at least 50 miles during 2011 in order to start work at a new work location in their field of employment may be able to deduct some moving expenses.
- 19 cents per mile from January 1-June 30, 2011
- 23.5 cents per mile from July 1-December 31, 2011
- 23 cents per mile in 2012
Charitable mileage-Miles driven for volunteer work and for charitable organizations and their functions is tax deductible.
- 14 cents per mile in 2011 and 2012
“Commuting miles, the miles driven from home to an office, are not allowed. Students who are taking courses that are required by their employer, or are work-related, may deduct this mileage at the business mileage rate,” added John Hewitt, CEO of Liberty Tax Service.
Separate commuting and personal mileage from the mileage driven for business, medical or moving, and charitable purposes. The easiest way to document mileage is to write it all down in a log or notebook. Record the vehicle’s odometer reading each January 1, and keep a log or written records of deductible mileage up-to-date throughout the year.
About Liberty Tax Service
Liberty Tax Service is the fastest growing retail tax preparation company in the industry’s history. Founded in 1997 by CEO John T. Hewitt, a pioneer in the tax industry, Liberty Tax Service has prepared over 9,000,000 individual income tax returns. With 42 years of tax industry experience, Hewitt stands as the most experienced CEO in the tax preparation business, having also founded Jackson Hewitt Tax Service.
Liberty Tax Service provides computerized income tax preparation, electronic filing, refund loans, and online filing through eSmart Tax. Each office offers customers audit assistance, a money back guarantee, and free tax return checking.