Hey there! Check out the IRS Mileage rates for 2024!

Guess what? The IRS just announced the new mileage rates for 2017. And let me tell you, there are some minor decreases this year. So, buckle up and let’s dive into the details.

I’m sure you’re curious about what exactly these mileage rates are. Well, they’re the rates that the IRS sets for you to calculate your deductible mileage expenses. Basically, they help you figure out how much you can deduct from your taxes when you use your car for work or business purposes.

Now, let’s talk numbers. For every mile you drive for business purposes, the IRS is allowing you to deduct 53.5 cents from your taxes. That’s a little bit less than what it was in 2016, but hey, every little bit helps, right?

If you use your car for medical or moving purposes, each mile is now worth 17 cents. Again, a small decrease from last year, but it’s better than nothing.

And finally, if you’re using your car for charitable organizations, you can deduct 14 cents per mile. Yep, that’s right. The IRS wants to give you a little pat on the back for doing good in the world.

Now, I know this may sound a bit confusing, but don’t worry. The important thing is to keep track of your mileage and keep those receipts. That way, when tax time rolls around, you’ll be all set to claim your deductions.

So, there you have it! The IRS has made a few tweaks to the mileage rates for 2017. But remember, always double-check with a tax professional to make sure you’re following all the rules and regulations.

Drive safely and happy deducting!

Hey there, I’ve got some news hot off the press! The IRS just released the official mileage rates for 2017, and guess what? They’ve gone down a bit.

The Lowdown on IRS Mileage Rates for 2017

So, let me break it down for you. The IRS has set the following rates for using a vehicle in 2017:

• If you’re driving for business purposes, you’ll get 53.5 cents per mile. That’s a slight drop from 54 cents in 2016.
• For medical or moving purposes, you’ll get 17 cents per mile. That’s down from 19 cents last year.
• And if you’re driving in service of charitable organizations, you’ll get 14 cents per mile.

The new mileage rates apply to any miles driven from January 1, 2017 onwards.

According to the official announcement, the business mileage rate has gone down by half a cent per mile, while the medical and moving expense rates have both dropped by 2 cents per mile compared to last year. The charitable rate stays the same, as it’s set by law.

Every year, the IRS decides on mileage rates for business, moving, and medical purposes. They do this by studying how much it costs to drive a car, considering both fixed and variable expenses. Variable expenses include things like gas, maintenance, and repairs. But when it comes to medical and moving purposes, only the variable rate applies.

Because the cost of driving a car is a big factor in determining mileage rates, it’s possible that the recent drop in oil prices influenced the IRS’s decision to lower the rates.

The mileage rates for 2017 apply to cars, vans, panel vans, and pickup trucks.

Choosing Between the Standard Mileage Rate and Actual Expenses

If you’re a business owner or employee who uses your personal vehicle for work, you have two choices when it comes to keeping track of your mileage: you can either use the standard mileage rate (SMR) or keep track of your actual expenses.

So which option is better? Well, according to a blog post on the MileIQ website (MileIQ being an app for tracking mileage), it really depends.

The easiest choice is to use the SMR, but it’s not as simple as it might seem. You not only have to keep track of the total number of miles you drive, but also the dates and destinations of your business trips, as well as the purpose of each trip.

On the other hand, tracking your actual expenses can result in a larger deduction, but it requires careful record keeping. You’ll need to record things like gas and oil expenses, repairs and maintenance costs, depreciation, fees, insurance, and more.

When it comes to using your car for business purposes, MileIQ suggests keeping track of your expenses during the first year. Then, when it’s time to do your taxes, you can compare the standard mileage rate to the actual expenses you incurred to see which deduction is bigger.

Should Employees be Reimbursed for Mileage?

Should businesses compensate employees for the mileage they rack up while using their personal vehicles for work-related activities?

According to Pam Steverson, a certified public accountant from the accounting firm Kemp, Williams, Steverson Bernard, who I spoke with over the phone, employers are not required to reimburse employees for the miles they drive for business. However, most businesses choose to do so.

I wanted to share some important info with you about mileage reimbursement. You see, the great thing is that employers have options when it comes to how they reimburse their employees. They don’t have to use the standard mileage rate. And here’s the best part – whatever the reimbursement amount is, the employer can actually deduct it as a business expense. How cool is that?

Now, there’s something else you should know. If the reimbursement is done through an accountable plan, which basically means the employee provides an expense report with details like the business purpose, miles driven, client visited, and date, then the employee doesn’t have to count it as income. Pretty sweet, right?

But let’s say the employer decides to give the employee a flat amount, like $500 a month, for using their vehicle without an accountable plan. Well, in that case, the employer can still deduct it as a business expense. However, here’s the catch – the reimbursement should be reported as wages, not travel reimbursement. And of course, the employer needs to make sure all the necessary payroll taxes are paid.

Hey Employers, make sure you update your written policies to match the changes in the Standard Mileage Rate (SMR) for 2017 and let your employees know about it.

More Tips and Information about Mileage Rates

If you’re working on tax returns from previous years, remember to go back to the mileage rates for those years. Your tax professional can help you figure out how to apply the mileage rules in different situations.

Also, once the SMR is announced, it’s valid for the whole year. But sometimes, the IRS adjusts the rate during the year if gas prices change a lot.

Check out these resources for more information:

• Official IRS notice for the 2017 mileage rates
• 2016 mileage rate for miles driven in 2016
• 2015 mileage rate for miles driven in 2015