The IRS Sets the 20245 Mileage Rate

I have some important news to share with you. The Internal Revenue Service (IRS) has just announced the mileage rate for the year 2015. Are you ready to find out? Let’s dive in and discover what this means for you.

If you’re wondering what the mileage rate is, it’s the amount of money you can deduct from your taxes for each mile you drive for business purposes. Cool, right? It’s like getting a reward for all those miles you put on your car!

Okay, so here’s the deal. The IRS has determined that for the year 2015, the standard mileage rate for business travel is 57.5 cents per mile. This means that for every mile you drive for work, you can deduct 57.5 cents from your taxes. Pretty neat, huh?

But hold on, there’s more! The IRS also sets a separate mileage rate for medical or moving purposes. For these types of trips, the rate is 23 cents per mile. So if you have to drive to the doctor’s office or move to a new home, you can deduct 23 cents for each mile driven.

But why does the IRS do this? Well, they’re trying to make it fair for everyone. They know that if you have to drive a lot for work, it can really add up. By allowing you to deduct a certain amount per mile, they’re giving you a break on your taxes. It’s their way of saying, Hey, we know it costs you some money to get around, so we’ll help you out!

Now, I know this might sound a bit confusing at first, but don’t worry. I’ll break it down for you. Let’s say you drove 1,000 miles for work in 2015. You could deduct $575 from your taxes. That’s a nice chunk of change, right?

It’s important to keep track of your mileage throughout the year. You can use a mileage log or even a smartphone app to help you keep tabs on all those miles. Trust me, it’ll be worth it when tax time rolls around.

So, to sum it all up, the IRS has set the mileage rate for 2015 at 57.5 cents per mile for business travel and 23 cents per mile for medical or moving purposes. Remember to keep track of your mileage, and come tax time, you’ll be happy you did.

Hey, guess what? The Internal Revenue Service (IRS) just released the mileage rates for 2015!

• For business use, it’s 57.5 cents per mile.
• For medical or moving expenses, it’s 23.5 cents per mile.
• And if you’re driving for charitable purposes, it’s 14 cents per mile.

That’s right, the business mileage rate went up by 1.5 cents per mile compared to last year’s rate.

But hold up, these rates are only for miles driven starting from January 1, 2015. If you drove during 2014, you’ll need to use the 2014 rates.

Now, here’s something interesting. The medical, moving, and charitable rates are staying the same as last year. But, get this, the business rate went up. Can you believe it? Even though gas prices went down before they announced the new rate. Strange, right?

But let me tell you something interesting. The rate was actually decided a long time ago. The IRS has said that they figure out the standard mileage rates by doing a study every year on how much it costs to have a vehicle.

Using the Standard Mileage Rate for Business

People who own small businesses or work for themselves can use the standard mileage rate to figure out how much they can deduct from their taxes for using a vehicle for work.

You have a choice. You can either use the standard mileage rate that the IRS gives you, or you can keep track of all the actual expenses you have for using your vehicle. But if you want to use actual expenses, you have to keep good records and have enough proof.

Most people like using the standard mileage rate because it’s easier and you don’t have to keep a bunch of records.

Just wanted to remind you that if you want to claim the standard mileage rate, you still need to keep track of the actual number of miles you drive and the reason for your business trip. No worries though, there are plenty of ways to do this, like jotting down your mileage in a notebook or using a mobile app or software program.

Once you’ve got that mileage info, you simply multiply it by the IRS standard mileage rate to figure out your deduction. It’s way easier than trying to calculate all the different expenses of using your car for business, like gas and maintenance.

Reimbursing Employees for Using Personal Vehicles for Work

By the way, the standard mileage rate is also what employers often use to reimburse employees who use their own cars for work-related purposes. It’s a straightforward way for them to cover those costs.

In most states, employers are not required to reimburse employees for business travel expenses, but many still choose to do so because it’s considered fair. A common method of reimbursement is using the standard mileage rate.

When employers reimburse their employees, they can deduct the amount as a business expense. It’s important to note that this reimbursement should not be treated as taxable income for the employee. The goal is to make the employee whole by reimbursing them for using their personal vehicle.

If you, as an employer, do not reimburse your employee for their business use of a personal vehicle, they may be able to deduct the unreimbursed expense on their 1040, Schedule A. In this case, you won’t be able to claim the deduction.

Hey there, employees! Make sure you take a peek at your personnel handbook or company policy to find out what it says.

And employers, listen up! You might want to give your employees a heads up about the 2015 reimbursement rate. Or, if it’s already mentioned in your handbook, make sure to update it.

Want to Learn More About IRS Standard Mileage Rates?

If you want all the nitty-gritty details about the 2015 mileage rate, check out the official IRS Notice that announces the new rates.

Now, here’s the deal: there are some rules and limitations when it comes to using the standard mileage rate. Take a look at the tax instructions for filing your return, or use your tax filing software for guidance. And don’t forget to chat with your accountant if you need any specific interpretations.

Once rates are announced, they usually stay the same for the whole year. But back in 2011, the IRS decided to raise the business mileage rate in the middle of the year because gasoline prices were really high.

Just a heads up: If you’re wondering about the standard mileage rate for 2014, check out the article on the 2014 IRS mileage rate.

If you’re interested in the standard mileage rate for 2016, take a look at the article on the 2016 IRS mileage rate.