IRS Mileage Rates and Mileage Tax Deductions
Keeping track of your vehicle mileage could give you big savings at tax time. Accurate records of your mileage will allow you to deduct the costs of operating a vehicle for business, charitable, medical or moving purposes on your taxes. Listed below are the most common mileage deductions and ways you can take advantage of them. Parking fees and tolls can be claimed in addition to the standard mileage rate. You also have the option of claiming the actual cost of using a vehicle rather than using the standard mileage rates.
Medical or Moving Purposes
You can claim a deduction of 19 cents per mile driven for medical or moving purposes. For medical purposes, this includes pharmacy trips to pick up prescriptions and doctor visits. For moving purposes, the rate applies to each mile driven for your move if certain conditions are met.
You can claim a charitable contribution deduction of 14 cents per mile for each mile driven for the performance of services for a charitable organization.
Job Search Purposes
Mileage expenses incurred while seeking new employment in the same occupation are deductible using the standard mileage rate of 53.5 cents per mile.
Job-Related Educational Purposes
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 53.5 cents per mile.
Mileage expenses incurred for business purposes if self-employed or at the request of your employer are deductible using the standard rate of 53.5 cents per mile. If you work at two places in one day, you can deduct the expense of getting from one workplace to the other.
For tax purposes, you may not use the business standard mileage rate after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. Additionally, the rate can only be used on up to 4 vehicles.
It is important to keep accurate mileage records in order to claim the mileage deduction. For each of the above purposes, your records should include detailed information such as:
- total miles for the year
- mileage for each deductible use
- business, charitable, educational, medical or moving purpose
- times and dates
Refer to our Tax Glossary for a complete list of definitions and explanations of commonly used tax terms.
Updated for 2015 Tax Year