The New IRS Mileage Reimbursement Rate
Sep 07, 2008
Gas Prices have reached the ceiling. Many had ended selling their cars while some lend their cars to rent-a-car centers. But many people still use their car because it’s a necessity. IRS is very much aware of the current gas price impact that’s why they re-aligned the Mileage Reimbursement Rate for the 2nd half of 2008.
To give you a concrete example: If you drive 100 miles/day back and forth to go to work or 500 miles per week. You will be able to deduct $292.50 a week off your taxes! Many companies reimburse you for driving and most of them follow the reimbursement standard rate of the government which now stands at 58 cents per mile (up by 8 cents from the previous rate of 50 cents).
Here’s the chart of the New Mileage Rate:
|
Purpose |
Rates 1/1 through 6/30/08 |
Rates 7/1 through 12/31/08 |
|
Business |
50.5 |
58.5 |
|
Medical/Moving |
19 |
27 |
|
Charitable |
14 |
14 |
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It is important to avail to as many government giveback programs available because they are actually Free Money.
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