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What are the mileage tax deduction rules?

The mileage tax deduction rules generally allow you to claim $0.655 per mile in 2023 if you are self-employed. You may also be able to claim a tax deduction for mileage in a few other specific circumstances, including if you’re an armed forces reservist, qualified performance artist or traveling for charity work or medical reasons.

What are the mileage deduction rules, driving with navigation.

There’s a lot to unpack when talking about claiming mileage on your taxes. In this article, we’ll outline who can take a tax deduction for mileage, how to take the deduction, and other things you should consider.

If you use you your vehicle for business purposes, you should know that claiming mileage is one of two ways of claiming a tax benefit for car-related costs. The “actual car expense” method is the other way; it lets you claim a deduction for car insurance , deductible car repairs , among other costs.

Do you need help with mileage deductions on your taxes and other deduction possibilities? Check out our Guide to Gig Worker Taxes .

Who can take a tax deduction for mileage?

Before the Tax Cut and Jobs Act (TCJA) of 2017, employees were able to claim a tax deduction for mileage and other expenses that were not reimbursed by their employer. However, the TCJA suspended the deduction for employee business expenses, changing the mileage deduction rules so that most employees can no longer deduct mileage and other unreimbursed expenses.

Here’s who may still claim mileage on taxes:

Small business owners. Self-employed taxpayers who file Schedule C or Schedule F.
Other self-employed workers. This includes independent contractors, such as drivers for rideshare services.
Certain types of employees. Specifically, qualified performing artists, reservists in the armed forces, and fee-based government officials are eligible to claim mileage
Individuals traveling for volunteer work or for medical appointments.

File with H&R Block to get your max refund

Claiming mileage on your taxes.

How you deduct mileage for your taxes depends on your situation. So, if you’re claiming mileage as a medical or charitable expense, you won’t do it the same way as a business expense. The forms you use and the amounts you can deduct per mile will vary.

How to deduct mileage for taxes for the self employed

Self-employed individuals will report their mileage on the Schedule C form. In addition to providing the number of miles driven during the tax year, you’ll also need to answer a few questions about the vehicle, including when it was placed into service for business.

As mentioned above, the mileage rate for business owners and other self-employed workers is $0.655 in 2023.

If you’re not sure what to include as your business mileage, you’re not alone. We often get this question: “Can I deduct mileage to and from work?” The answer here is no; you’d just count the trips after arriving at work or first business destination.

For business owners, the trip from home to your main business location, such as an office or store, is not deductible. Trips driven from there to other business locations, such as to call on clients, and from your last stop back to your main place of business are deductible.

For rideshare drivers, such as Uber or Lyft, this means the drive from home to pick up the first passenger and the drive home after the last drop off are not deductible. Only the trips driven between the first business stop and the subsequent stops can be used for claiming mileage on your taxes.

Note: if your home office is your main business location, then trips from home to other business locations are deductible.

How to calculate mileage for certain employees

If you’re one of the types of employees listed above, you’ll also be able to claim mileage on your individual tax return at the rate of $0.655 in 2023. You’ll report your miles and also answer a few questions about the vehicle on Form 2106 .

Employees must follow the same rules that business owners and other self-employed workers follow. That is, commuting expenses – trips from home to your first destination – are not deductible. See IRS Publication 463 for more information.

How to deduct mileage for taxes in other situations

You can claim mileage for trips related to medical appointments or for volunteering or charity work if only if you’re claiming itemized deductions. You should investigate whether claiming the standard deduction (vs. itemized deductions) provides you a better tax benefit.

Mileage for medical care is included in your medical deduction. The rate is $0.16 for 2023.
Mileage for volunteer work is included in your charitable deduction. The rate is $0.14for 2023.

Limitations to know about when claiming mileage on your taxes

There are a few times when you won’t be permitted to claim the standard mileage rate option. This option is not allowed if you:

Use five or more cars at the same time (as in fleet operations)
Claimed a depreciation deduction for the car using any method other than straight line depreciation
Claimed a Section 179 deduction on the car
Claimed the special depreciation allowance on the car
Claimed actual car expenses after 1997 for a leased car, or
Are a rural mail carrier who receives a qualified reimbursement

What else should you consider when claiming a tax deduction for mileage?

Choosing the standard mileage rate vs. the actual car expense method has its own set of implications.

If you want to use the standard mileage rate for a personally owned car, you must use that method the first year the car is used for business. You must make the choice by the return due date (including extensions) of the year the car is placed in service. If you choose to switch methods in later years, specific rules for depreciation will apply.
If you chose the actual car expense method the first year the car is used for business, you must stick with that choice every year the car is used for your business.

Lastly, recordkeeping is a must for anyone who wants to claim a tax deduction for mileage. You’ll need comprehensive and contemporaneous records in the event the IRS wants to see them. Contemporaneous means you’re tracking your miles when you take business trips rather than trying to reconstruct them months or years later.

You could use pen and paper to keep track – or even log your miles from your computer – but there are also smartphone apps that can make tracking mileage a lot more convenient.

In addition to keeping records on your miles, you should also keep receipts for parking and toll fees. Even if you use the standard mileage rate, parking and tolls (other than parking and tolls related to your main place of business) may be deductible.

Have more questions about mileage deduction rules?

We understand you might want some help when it comes to claiming mileage on your taxes. That’s why we’re here.

Have a side business? Take control of your taxes and get every credit and deduction you deserve. File with H&R Block Online Deluxe (if you have no expenses) or H&R Block Online Premium (if you have expenses).

Have questions about self-employment taxes and other small business tax issues? Rely on our team of small business certified tax pros to get your taxes right and keep your business on track. Find out how Block Advisors can help with your small business taxes .

Our small business tax professional certification is awarded by Block Advisors, a part of H&R Block, based upon successful completion of proprietary training. Our Block Advisors small business services are available at participating Block Advisors and H&R Block offices nationwide.

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Everything You Need to Know About Claiming a Mileage Tax Deduction

Do you drive for business, charity or medical appointments? Here are the details about claiming mileage on taxes.

About Claiming Mileage Tax Deductions

Healthcare workers using mobile phone in her car, after work

Getty Images

While other options may benefit taxpayers more, deducting mileage is often the go-to as it's the easiest to calculate.

Key Takeaways:

Mileage deductions can add up to significant savings for taxpayers.
Self-employed workers and business owners are eligible for the largest tax-deductible mileage rate.
Mileage can be deducted for volunteer work and medical care, but IRS restrictions limit the amount you can claim.
The Tax Cuts and Jobs Act of 2017 eliminated the ability of employees to deduct mileage for unreimbursed job-related travel.
Only active-duty military members are eligible to deduct mileage related to moving and only when their move occurs because of new orders.

Claiming a tax deduction for mileage can be a good way to reduce how much you owe Uncle Sam, but not everyone is eligible to write off their driving costs.

In the past, taxpayers had more options to deduct mileage and could claim unreimbursed travel while on the job.

“That’s not deductible anymore,” says Michelle Brown, managing director in the Kansas City, Missouri, office of accounting firm CBIZ.

The Tax Cuts and Jobs Act of 2017 eliminated itemized deductions for unreimbursed mileage and also significantly narrowed the mileage tax deduction for moving expenses. The latter can now only be claimed by active-duty military members who are relocating because of new orders.

Still, a mileage deduction exists for the following situations:

Business mileage for the self-employed.
Mileage related to medical appointments.
Mileage incurred while volunteering for a nonprofit.

You need to know the rules for claiming mileage on your taxes and, more importantly, you need to keep careful records. Here's a breakdown of everything you need to know about how to claim mileage on your taxes.

Current Tax Deductible Mileage Rates

How much you can deduct for mileage depends on the type of driving you did. Business mileage is most common, but you can also deduct mileage accrued for charitable purposes or for receiving medical care.

“Those are itemized deductions,” says Nicole Davis, a CPA and member of the FreshBooks Accounting Partner Program. “That mileage rate is a lot lower than the business mileage rate.”

For the 2023 tax year, the IRS approved the following standard mileage rates:

Self-employed/Business: 65.5 cents per mile.
Charity: 14 cents per mile.
Medical and Moving: 22 cents per mile.

For the 2024 tax year, standard mileage rates are:

Self-employed/Business: 67 cents per mile.
Medical and Moving: 21 cents per mile.

Mileage rates for business, medical care and moving are typically adjusted once at the start of each year. However, on rare occasions, the IRS might adjust rates mid-year to account for inflation or other economic factors. This most recently happened in 2022 and 2011. However, the standard mileage rate for charity is set by statute so the IRS can't adjust it.

Self-Employed Workers: What Mileage Is Deductible

When it comes to mileage tax deductions, the self-employed mileage deduction is the largest one available. It can be valuable to anyone with their own business, but especially for those working in the gig economy as delivery drivers, says Duke Alexander Moore, an enrolled agent and the CEO and founder of Duke Tax in Dallas, Texas, which specializes in tax services for content creators and entrepreneurs.

You can also rack up deductible business miles from meeting with clients, traveling to secondary work sites or running errands to pick up supplies. If a person drives for both business and personal purposes, only the miles related to the business are deductible. Business miles are considered only those driven from a person's principal place of business.

“We never want to confuse a commute as business travel,” Moore says.

Driving from home to a principal place of business is considered a commute, even for those who are self-employed or small business owners. Only those who have a home office as their principal place of business can deduct mileage when driving to and from home for business-related purposes.

How to Claim Mileage on Taxes

Self-employed workers can claim their mileage deduction on their Schedule C form, rather than the Schedule A form for itemized deductions. Mileage for self-employed workers isn't subject to any threshold requirements. In other words, all miles are deductible regardless of how much a person drives for work.

Is mileage considered an office expense? No, it doesn’t get lumped in with office expenses on a Schedule C. Instead, mileage can be claimed on line 9 for car and truck expenses.

Alternatively, people can claim their actual vehicle expenses for maintenance, repairs and fuel. Workers who use a vehicle for personal travel as well can deduct only a prorated percentage of expenses based on business use.

Taxpayers may want to calculate which option will result in the higher deduction, but for most, deducting mileage is easier and will result in greater tax savings.

“The standard mileage deduction is the gift that keeps giving,” Davis says.

Regardless of which method you use – standard mileage rates or actual expenses – plan to stick with it for the duration of the time you own a vehicle. Switching from mileage to actual costs could be difficult since you may need to factor in calculations for depreciation.

The IRS states that taxpayers who want to use standard mileage for their deductions must do so in the first year the vehicle is available for business use. Meanwhile, those who operate a fleet of vehicles – five or more – can deduct only actual expenses.

Itemize Your Deductions to Claim Medical and Charitable Mileage

Self-employed people aren't the only ones who can take advantage of mileage tax deductions, but everyone else will need to file a Schedule A form and itemize their deductions if they want to get in on the tax savings. Those who itemize may be able to deduct mileage for medical care and charity work.

But be aware that these deductions are not nearly as lucrative as those for self-employed workers. That’s because the reimbursement rates for medical and charitable mileage are considerably lower than what's offered for business travel. What’s more, there are thresholds and other limits on these deductions.

“Typically, you won’t see most people taking advantage of these,” Moore says.

Mileage accrued when driving to and from doctor visits, the pharmacy and the hospital can all count toward a medical deduction . But there's a catch: Only medical expenses – both mileage and other bills combined – in excess of 7.5% of your adjusted gross income can be deducted.

While it can be difficult to exceed the income threshold, if you had significant medical bills last year, it can be worthwhile to add up your annual mileage for doctor visits to boost your deduction amount.

If you drive to volunteer at your favorite nonprofit, that mileage is deductible as part of your charitable donations. The IRS allows volunteers to claim 14 cents per mile, but you have to be doing the volunteering yourself. You can't, for example, be driving a child to a volunteer activity. There is no threshold requirement for claiming these miles.

“In order to take advantage (of these deductions), you need to be itemizing,” Brown says.

With the standard deduction for married couples filing jointly set at $27,700 in 2023, Brown says few people are able to claim charity and medical mileage deductions because they get a greater benefit from taking the standard deduction than they do from itemizing.

The IRS Will Want to See Your Records

While deducting mileage can save tax dollars, think twice before claiming travel time you can't document. If you're audited , the IRS will want to see a log that includes dates, destinations and the reasons for travel. These travel logs should record exact mileage amounts.

“It’s something called substantiation,” Moore says. What’s more, the log is supposed to be updated throughout the year as a person drives.

“It could be handwritten; it could be an Excel spreadsheet; it could be an app,” Brown says.

MileIQ, TripLog and Everlance are a few of the apps available that automatically detect travel and log every trip. Users can then categorize their drives by purpose and run reports to document deductions. If you didn't track your travel in real time, Davis suggests looking back at your calendar to create a log before you claiming the deduction on your tax return.

During an audit, taxpayers will need to provide evidence of when they traveled and why. You may be able to piece that together based on bank records of purchases, calendar events and even your phone’s GPS tools.

Still, there is no guarantee the IRS will accept documentation compiled after the fact. It's better to keep a log right from the start rather than risk a deduction being disallowed during an audit.

What Happens During an IRS Tax Audit

Kimberly Lankford March 14, 2023

Tags: money , personal finance , taxes , tax deductions , tax returns , IRS

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Tax Planning

How To Calculate Mileage Deductions on Your Tax Return

Mileage rates for 2022 and 2023, how to calculate mileage for taxes, who can deduct mileage for business, who can deduct mileage for moving, who can deduct mileage for medical reasons, who can deduct mileage for charitable reasons, how to claim mileage on your taxes, frequently asked questions (faqs).

Luiz Alvarez / Getty Images

If you use your vehicle for business or certain other activities, like traveling for medical treatment or charitable work, you may be able to deduct your costs for tax purposes, but the Internal Revenue Service (IRS) rules for doing so are strict.

Learn the IRS rules for deducting your mileage on your tax return, including how to choose a mileage method, what records you need, and how to claim the deduction at tax time.

Key Takeaways

For business driving, you can choose between using the standard mileage rate or your actual costs when entering your deduction on Schedule C of your Form 1040.
When calculating the deduction for miles driven for moving, you must be active-duty military transferring to a new permanent post.
To deduct your expenses for driving to receive medical care, you can choose between standard mileage rates or actual costs.
To claim mileage for traveling for volunteering work, you can use the standard mileage rate for charity work or you can deduct the cost of oil, gas, tolls, and parking fees.

The chart above shows the standard IRS mileage rates for tax years 2022 and 2023. The standard mileage rate is the amount you can deduct based on miles driven rather than your actual vehicle expenses.

Businesses often use these rates to reimburse employees for using their personal vehicles for job-related travel. If you’re self-employed, you can use them to determine your own deduction.

There are two ways to calculate your mileage for your tax return : using the standard mileage rate or calculating your actual costs.

Standard Mileage

The standard mileage rate is a simplified way of deducting your mileage. It is based on the number of miles driven instead of your actual costs. You keep track of your miles driven for IRS-approved purposes (business, medical activity, moving, or charitable work). Then, you multiply them by the correct mileage rate.

For example, if you drove your vehicle 1,000 miles for IRS-approved business purposes in 2022, multiply 1,000 miles x $0.58 per mile. You’ll be able to deduct $580.

To use the standard mileage rate for a car you own, you need to choose this method for the first year you use the car for business. You can then choose between deductions based on the standard mileage rate or actual costs in subsequent years. If you choose the standard mileage rate for a vehicle you’re leasing, you’ll need to stick with that method for the entire lease.

If you choose this method, you’ll need to log your miles to calculate your deduction at the end of the year. Keep a written mileage log in your vehicle, or download a mileage app to keep track.

Actual Costs

You can choose to deduct the actual costs of using your vehicle instead of deducting your mileage. If you’re using a vehicle for both business and personal reasons, you can deduct only the costs for business use. You can include the following expenses:

Oil, tires, and repairs
License and registration fees
Depreciation of the vehicle or lease payments due to the percentage of miles you drive it for business purposes

You’ll need to keep records, such as receipts, to document your vehicle expenses. They will allow you to support your deduction in case you're audited. You should keep old tax records for at least three years after you’ve filed your return.

If you qualify for both mileage methods, try calculating both to see which results in a bigger deduction.

You can’t claim business mileage deductions for your commuting expenses between your home and your regular place of work. Your employer may reimburse you for some job-related travel, such as if you drive from your primary work location to meet with clients.

However, you aren’t allowed to deduct mileage that your employer doesn’t reimburse you for. The only exceptions are for:

Military reservists
State and local employees paid on a fee basis
People who have job expenses related to an impairment
Some performing artists

The rules are different if you’re self-employed, though. You still can’t deduct your mileage if you commute from your home to your primary business , but you can if you’re traveling from your business to meet with clients or visit a project site, even if your business is based out of your home.

The tax rules for ride-share drivers are similar. Ride-share drivers can deduct mileage according to the standard IRS rate or their actual costs.

You can deduct your mileage when moving only if you’re active-duty military and you’ve been ordered to a permanent change of station. Otherwise, this mileage deduction isn’t allowed.

You can take a medical tax expense deduction only if your overall unreimbursed medical costs exceed 7.5% of your adjusted gross income (AGI). You can deduct your mileage at the standard rate of 18 cents per mile for 2022 and 22 cents per mile for 2023, or you can deduct your actual costs of gas and oil. Deducting parking costs and tolls is also allowed.

You’re allowed to deduct mileage for your own treatment. You can also claim this deduction if you’re transporting a child to receive treatment or visiting a mentally ill dependent as part of a recommended treatment.

If you travel to perform volunteer work, you can deduct the standard amount for the year. Alternatively, you can deduct your costs of oil and gas but not other vehicle expenses like depreciation, maintenance, insurance, and fees.

You can also deduct your costs for parking and tolls while volunteering, no matter which deduction method you choose.

If you’re claiming a deduction for business mileage, you’ll report it using Schedule C on Form 1040. To claim mileage deductions for moving, medical treatment, or charitable deductions, you’ll need to itemize on your return. You’ll do so using Schedule A on your Form 1040.

No matter what type of mileage you’re deducting, be sure to keep thorough records. Keep a mileage log if you use the IRS standard mileage rate, or hold onto receipts if you’re deducting your actual costs. Be sure to store them with your other tax records so you’ll be covered in the event of an audit.

Is mileage for taxes round-trip or one-way?

If you are using the standard mileage rate, multiply it by the total, round-trip mileage that you drove for business, moving, medical, or charitable reasons.

How can I keep track of mileage for taxes?

If you are keeping a written log for a mileage deduction , you should include the date, destination, purpose, and miles driven for each trip.

IRS. " IRS Issues Standard Mileage Rates for 2023; Business Use Increases 3 Cents Per Mile ."

IRS. " Topic No. 510 Business Use of Car ."

IRS. " Moving Expense to and From the United States ."

IRS. " Here's Who Qualified for the Employee Business Expense Deduction ."

IRS. " Publication 463 (2022), Travel, Gift, and Car Expenses ."

IRS. “ Publication 502, Medical and Dental Expenses .”

IRS. " Publication 526: Charitable Contributions ," Page 6.

Tax season 2023: What exactly is the mileage rate? There's more than one.

Gas prices at the pump took one crazy trip in 2022 – and it's going to add another layer of complexity for those who claim mileage deductions on their 2022 tax returns.

What exactly is the standard IRS mileage rate? Important tip: It's not just one number for 2022 federal income tax returns.

An extremely volatile year for gas prices last year drove the Internal Revenue Service to take the unusual step of increasing some mileage rates for the second half of the year beginning in July. A midyear bump doesn't happen very often. The last time the IRS made such a move was back in 2011.

Cheaper gas slows inflation: Consumer price index report shows fall in gas prices helps inflation slow again in December

Gas expected to get more costly in 2023: Gas prices are down but projected to rise again. How much will gas cost in 2023?

What are the two mileage rates for 2022?

For the 2022 tax year, you're looking at two mileage rates for business use. A rate of 58.5 cents a mile applies to travel from January through June last year, and it's 62.5 cents per mile for trips from July through December.

Just to make things a tad more confusing, the IRS also announced that beginning in January, the standard mileage rate for business use is going up again to 65.5 cents per mile driven for business purposes in 2023. Remember, though, that rate does not apply to your 2022 tax return.

Another good tip: These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles.

Who can even take a mileage deduction?

As you're preparing to do your 2022 tax return, keep in mind that getting a tax break for claiming mileage isn't as simple as it used to be .

The IRS business standard mileage rate cannot be used to claim an itemized deduction for unreimbursed employee travel expenses under the Tax Cuts and Jobs Act, which remains in effect through 2025. If you're working for an employer who doesn't reimburse mileage for your travel, you're out of luck.

Taxpayers cannot deduct mileage for their regular moving expenses under the Tax Cuts and Jobs Act of 2017 either.

Taxpayers can claim a deduction for moving expenses if they are members of the armedforces on active duty and are moving under orders to a permanent change of station.

The IRS standard mileage rate is a key benchmark that's used by the federal government and many businesses to reimburse their employees for their out-of-pocket mileage expenses.It's also key at tax time for many, including self-employed individuals, who can claim business mileage on a tax return.

The IRS rate reflects the cost to fill up your tank, as well as other expenses associated with driving for business. The IRS notes: "The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs."

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Tax break remains for self-employed

The mileage deduction is often key for those who are running their own businesses.

A self-employed taxpayer who files a Schedule C can use the standard rate to deduct expenses from mileage incurred while doing business.

Besides the standard mileage rate, taxpayers have another option for calculating the deduction – actual expenses.

It is more complex for taxpayers to break down the actual costs for the deduction than to simply use the standard mileage rate. For example, you’d have to figure out what it costs to operate the car or truck for the portion of miles dedicated to business. That means taking into account the cost of insurance, gas, repairs, tires and other expenses.

You can only use one method – the standard mileage rate or the business portion of actual expenses – for the same vehicle.

"Many of my Schedule C clients use the mileage due to its simplicity," said George W. Smith, partner at Andrews Hooper Pavlik PLC in Bloomfield Hills, Michigan. "The only record they need to keep is mileage."

Some clients, he said, still go with actual expenses but that has been decreasing over time.

Mileage can be used by those who are self-employed people in a variety of fields, he said, as well as those who own rental properties and claim mileage for trips for repairs, maintenance, or collecting rent.

What's your tax bracket? What are the 2022 US federal tax brackets? What are the new 2023 tax brackets? Answers here

Before you file your taxes, check these tips: Tax return season 2023: What to know before filing your taxes

Medical mileage can be deducted – sometimes

As for medical mileage, it’s included with medical expenses Schedule A.

Lower mileage rates apply in different circumstances.

The IRS rate is 18 cents a mile for the first half of 2022 and 22 cents a mile for the second half of 2022 for deductible medical or moving expenses. (The medical or moving expense rate remains at 22 cents a mile for 2023.)

Mileage for medical purposes could be deducted if the transportation costs are mainly for – and essential to – your medical care. You can deduct qualifying medical expenses that exceed 7.5% of your adjusted gross income. And you'll have to itemize deductions – instead of taking the standard deduction – to claim medical expenses. Generally, you need a lot of medical expenses to garner any deduction.

An IRS rate of 14 cents per mile for mileage relating to work for charitable organizations remained at one rate throughout 2022 since that rate is set by statute, and it will remain at 14 cents a mile for 2023.

Tax backlog shrinks: IRS tax backlog smaller leading into 2023 tax season than it was in 2022

Tax deadlines for 2023: Tax season 2023 officially started: Here are key deadlines to keep in mind

How prices caused many twists and turns at tax time

Gas prices at the pump shocked drivers from one fill-up to the next throughout much of 2022.

After Russia launched a full-scale invasion of Ukraine in late February of last year , oil prices surged above $100 a barrel for the first time since 2014.

The U.S. national average peaked at $5.034 a gallon on June 16, 2022, according to data from GasBuddy.

In early June, the IRS took a fairly unusual step to make a special adjustment and raise the mileage rate by 4 cents a gallon for business travel during the last six months of 2022 because of the surge in gas prices .

Gas prices pulled back to a national average of $3.053 a gallon by Dec. 26, according to GasBuddy. And so far in 2023, we're seeing some relief but are still not edging below $3 a gallon on average.

The U.S. average was $3.386 a gallon as of Jan. 23, according to GasBuddy, up 9.3 cents from the week earlier and up 29.5 cents from a month earlier.

This year isn't expected to offer a smooth ride for drivers. "It could be expensive,” said Patrick De Haan, head of petroleum analysis at GasBuddy, who predicts that the national average could climb above $4 a gallon as early as May.

"Curveballs are coming from every direction," De Haan said.

Standard Mileage vs. Actual Expenses: Getting the Biggest Tax Deduction

The IRS offers two ways of calculating the cost of using your vehicle in your business: 1. The Actual Expenses method or 2. Standard Mileage method. Each method has its advantages and disadvantages, and they often produce vastly different results. Each year, you’ll want to calculate your expenses both ways and then choose the method that yields the larger deduction and greater tax benefit to you.

Should you use the standard mileage or actual expenses method?

Can you switch between standard mileage and actual expenses methods, how are expenses categorized for rideshare businesses, how does the actual expenses method work, how does the standard mileage rate method work, example #1: part-time uber driver, example #2: full-time uber driver-partner, what are the pros and cons of the standard mileage method, what are the pros and cons of the actual expenses method, which is better, the standard mileage or actual expenses method, what form do you use to deduct self-employed car expenses, do you need to keep records of your mileage and vehicle expenses.

Key Takeaways

The IRS offers two ways of calculating the cost of using a vehicle in a business: the actual expenses method and standard mileage rate method.
To use the actual expenses method, add up all the money you actually spent operating your vehicle and multiply that figure by the percentage of the vehicle’s business use (e.g. if half your mileage is for business, multiply by 50%).
To use the standard mileage method, keep track of the miles you drive for business throughout the tax year and multiply that number by the standard mileage rate.
The standard mileage rate for 2023 is 65.5 cents per mile. This amount increases to 67 cents per mile for 2024.

If you drive for a company such as Uber, the business use of your car is probably your largest business expense. Taking this tax deduction is one of the best ways to reduce your taxable income and your tax burden.

This is doubly important because you have to pay two separate taxes on your ridesharing income—once for your income tax and once for your self-employment tax (the amount you contribute as a self-employed individual to Social Security and Medicare). Both taxes are based on the net profit of your business, which can be reduced by taking a deduction for the use of your car for your business.

The IRS offers two ways of calculating the cost of using your vehicle in your business:

The actual expenses method , or
Standard mileage rate method

Each method has its advantages and disadvantages, and they often produce vastly different results. Actual expenses might produce a larger tax deduction one year, and the standard mileage rate might produce a larger deduction the next.

If you want to use the standard mileage rate method in any tax year, you must do so in the first tax year you use your car for business. In later years you can choose to switch back and forth between the methods from year to year. Each year, you’ll want to calculate your expenses both ways and then choose the method that yields the larger deduction and greater tax benefit to you. If you use the actual expense method in the first year you are required to continue to use this method for that specific vehicle in future years.

Below you’ll find an easy-to-follow road map to choosing the best method for you, this year.

As a self-employed owner of a ridesharing business, you’ll report your business income as well as your business expenses on Schedule C. The chart below breaks total rideshare business expenses into two main groups for 2023:

Common operating expenses and
Vehicle expenses

A vehicle repair section with a map and directions.

Many of the items listed in the chart apply both to your business and to your personal use. For example, you might use the same phone and wireless plan for both your business and your personal life.

For tax purposes, you need to calculate the percentage of each expense that applies to your business and deduct only that portion from your business income.
The IRS can disallow expenses that are not supported by receipts, mileage logs, and other documentation.

For this reason, many people use a bank account or credit card separate from their personal accounts for all their business transactions. That way they can refer to their monthly statements or online records to accurately track their business expenses.

As the name suggests, the actual expenses method requires you to add up all the money actually spent in the operation of your vehicle. You then multiply this figure by the percentage of the vehicle’s business use.

For example, if half the miles you drive are for business and half are for personal use, you will multiply your total vehicle expenses by 50% to arrive at the business portion (e.g. $9,500 total expenses x .50 business use = $4,750 business expenses).

Some of the costs you can include in your actual expenses are:

Lease payments
Auto insurance
Maintenance (such as oil changes, brake pad replacements, tire rotations)
New tire purchases
Title, licensing, and registration fees
Vehicle depreciation (use a depreciation table to calculate the amount, and then deduct only the portion that applies to the business use of your vehicle)

TurboTax Tip: Compute your mileage deduction using each method and then choose the method that yields that larger deduction.

The standard mileage rate method is a much simpler way of calculating the deduction for the business use of your car. It does not require you to track individual purchases and save receipts. Instead, you simply keep track of your business and personal mileage for the tax year. (Tip: Take a photo of your odometer on New Year’s Day and save it, so you can always see where your mileage stood at the beginning of the tax year.)

As with other tax deductions, you'll need to determine the percentage of your mileage that applies to your business.

The best way to do this is with a mileage log. You can keep track of all of your mileage during the year and note what use is for business versus personal.

For 2023, the rate is 65.5 cents per mile. For example if you drove 5,000 miles for business evenly divided throughout the year you would get:

2,500 business miles x $0.585 plus 2,500 business miles x $0.625 = $3,275 standard mileage deduction.

Uber makes it easy to track your miles while using their app. The mileage reported on your Tax Summary includes all the miles you drove waiting for a trip, en-route to a rider, and on a trip. This is a good starting point for calculating your total business miles.

You can add to this figure the business miles you drove without passengers, picking them up or to a central location after dropping them off.
Remember to use only the miles driven for your business in calculating your deduction.

Since Uber does not keep track of the miles you drive without passengers, you’ll need to keep your own mileage log. It should include:

the date you drove
the starting and ending odometer readings
a description of the business activity
and the starting and ending times of each trip

If you don’t want to keep a log by hand, mileage and expense-tracking apps can help you keep an accurate tally of this all-important deduction.

When you use the standard mileage rate deduction, you can’t deduct individual expenses for your car. For example, if your transmission broke down and had to be replaced, you might be better off using the actual expense method to take advantage of this large expense. The only way to know for sure is to keep good records and to calculate your tax deduction both ways.

An Uber partner-driver drove 10,000 miles in 2023, and 5,000 of those miles were for business. The driver’s actual expenses included:

$1,500 insurance
$6,000 lease payments
$400 repairs
$500 car washes

These expenses total $9,500. Since the driver used the car for business purposes 50% of the time, the actual expenses deduction is $4,750 ($9,500 x .50 = $4,750).

Using these same figures to calculate the standard mileage rate deduction, the driver multiplies the business mileage (5,000 miles) by the standard mileage rate, for a standard mileage rate deduction of $3,275.

In this example, the Uber driver-partner is able to deduct $1,475 more by using the actual expenses method than by using the standard mileage rate method.

An Uber partner-driver drove 40,000 miles in 2023, and 30,000 of those miles were for business. The driver’s actual expenses include:

$3,160 depreciation
$1,200 repairs
$750 car washes

These expenses total $11,300. Since the Uber driver-partner used the vehicle for business 75% of the time, the actual expenses deduction is $8,475 ($11,300 x .75 = $8,475).

Using the standard mileage rate method with these same numbers, the driver would multiply the number of miles driven for business (30,000) by the standard mileage rate (65.5 cents per mile for 2023), which comes out to $19,650.

In this example, the Uber driver-partner is able to deduct $11,175 more by using the standard mileage method than by using the actual expense method.

There are several benefits of using the standard mileage method, including:

Often results in a larger deduction for those who do significant driving.
Allows more flexibility, as you can switch to the actual expenses method in future tax years.
Record-keeping is usually simpler; there are even apps that can do it for you.
It’s typically easier to calculate your deduction using the IRS’s rate per mile.

However, the standard mileage method isn’t right for everyone. The potential drawback with this method is that you might end up with a lower deduction if you didn’t drive a lot throughout the year.

Consider the pros of using the actual expenses method when preparing to do your taxes:

In 2023, depreciation is accounted for as 28 cents of the standard mileage rate of 65.5 cents per mile.
For 2024, the depreciation amount is 30 cents of the standard mileage rate of 67 cents per mile.
Often results in a larger deduction for those who do a moderate amount of driving.
If you have a more expensive vehicle, you may be able to get a higher deduction.
You had a large car-related expense, like a major repair.

Some of the potential cons of using the actual expenses method include:

Inability to switch to the standard mileage method if you choose to use this method the first year
More extensive recordkeeping

Note that what’s considered a pro or con depends on your circumstances when filing your taxes.

Which method is going to be best varies by taxpayer. When deciding which method to use, some factors you’ll want to think about include:

How much you drive
The value of the vehicle
Whether you’re willing to be consistent about recordkeeping to track expenses

It’s also important to note that in order to use the standard mileage deduction rate, you must own or lease the vehicle you’re applying the deduction. When in doubt, speaking with a tax professional can help you determine which method you should use for calculating the business use of your car.

Whether you use the standard mileage or standard mileage method, you’ll deduct your self-employed car expenses on Schedule C of Form 1040.

As these examples show, the method you use to calculate the business use of your car can have a big impact on your total business expenses, your net income, and your tax burden. Keep complete records so you can calculate your deduction using both methods, and then choose the one that saves the most money for you.

The standard guidance from the IRS is to keep records of supporting documentation for the property until the period of limitations expires for the year in which you dispose of the property. However, keeping your taxes indefinitely can provide peace of mind and ensure you always have the records to recall should they come into question or if you need to refer to them when filing future returns. You can scan them digitally to keep them secure and save space.

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The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.

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How to Deduct Travel Expenses (with Examples)

Reviewed by

November 3, 2022

This article is Tax Professional approved

Good news: most of the regular costs of business travel are tax deductible.

Even better news: as long as the trip is primarily for business, you can tack on a few vacation days and still deduct the trip from your taxes (in good conscience).

I am the text that will be copied.

Even though we advise against exploiting this deduction, we do want you to understand how to leverage the process to save on your taxes, and get some R&R while you’re at it.

Follow the steps in this guide to exactly what qualifies as a travel expense, and how to not cross the line.

The travel needs to qualify as a “business trip”

Unfortunately, you can’t just jump on the next plane to the Bahamas and write the trip off as one giant business expense. To write off travel expenses, the IRS requires that the primary purpose of the trip needs to be for business purposes.

Here’s how to make sure your travel qualifies as a business trip.

1. You need to leave your tax home

Your tax home is the locale where your business is based. Traveling for work isn’t technically a “business trip” until you leave your tax home for longer than a normal work day, with the intention of doing business in another location.

2. Your trip must consist “mostly” of business

The IRS measures your time away in days. For a getaway to qualify as a business trip, you need to spend the majority of your trip doing business.

For example, say you go away for a week (seven days). You spend five days meeting with clients, and a couple of days lounging on the beach. That qualifies as business trip.

But if you spend three days meeting with clients, and four days on the beach? That’s a vacation. Luckily, the days that you travel to and from your location are counted as work days.

3. The trip needs to be an “ordinary and necessary” expense

“Ordinary and necessary ” is a term used by the IRS to designate expenses that are “ordinary” for a business, given the industry it’s in, and “necessary” for the sake of carrying out business activities.

If there are two virtually identical conferences taking place—one in Honolulu, the other in your hometown—you can’t write off an all-expense-paid trip to Hawaii.

Likewise, if you need to rent a car to get around, you’ll have trouble writing off the cost of a Range Rover if a Toyota Camry will get you there just as fast.

What qualifies as “ordinary and necessary” can seem like a gray area at times, and you may be tempted to fudge it. Our advice: err on the side of caution. if the IRS chooses to investigate and discovers you’ve claimed an expense that wasn’t necessary for conducting business, you could face serious penalties .

4. You need to plan the trip in advance

You can’t show up at Universal Studios , hand out business cards to everyone you meet in line for the roller coaster, call it “networking,” and deduct the cost of the trip from your taxes. A business trip needs to be planned in advance.

Before your trip, plan where you’ll be each day, when, and outline who you’ll spend it with. Document your plans in writing before you leave. If possible, email a copy to someone so it gets a timestamp. This helps prove that there was professional intent behind your trip.

The rules are different when you travel outside the United States

Business travel rules are slightly relaxed when you travel abroad.

If you travel outside the USA for more than a week (seven consecutive days, not counting the day you depart the United States):

You must spend at least 75% of your time outside of the country conducting business for the entire getaway to qualify as a business trip.

If you travel outside the USA for more than a week, but spend less than 75% of your time doing business, you can still deduct travel costs proportional to how much time you do spend working during the trip.

For example, say you go on an eight-day international trip. If you spend at least six days conducting business, you can deduct the entire cost of the trip as a business expense—because 6 is equivalent to 75% of your time away, which, remember, is the minimum you must spend on business in order for the entire trip to qualify as a deductible business expense.

But if you only spend four days out of the eight-day trip conducting business—or just 50% of your time away—you would only be able to deduct 50% of the cost of your travel expenses, because the trip no longer qualifies as entirely for business.

List of travel expenses

Here are some examples of business travel deductions you can claim:

Plane, train, and bus tickets between your home and your business destination
Baggage fees
Laundry and dry cleaning during your trip
Rental car costs
Hotel and Airbnb costs
50% of eligible business meals
50% of meals while traveling to and from your destination

On a business trip, you can deduct 100% of the cost of travel to your destination, whether that’s a plane, train, or bus ticket. If you rent a car to get there, and to get around, that cost is deductible, too.

The cost of your lodging is tax deductible. You can also potentially deduct the cost of lodging on the days when you’re not conducting business, but it depends on how you schedule your trip. The trick is to wedge “vacation days” in between work days.

Here’s a sample itinerary to explain how this works:

Thursday: Fly to Durham, NC. Friday: Meet with clients. Saturday: Intermediate line dancing lessons. Sunday: Advanced line dancing lessons. Monday: Meet with clients. Tuesday: Fly home.

Thursday and Tuesday are travel days (remember: travel days on business trips count as work days). And Friday and Monday, you’ll be conducting business.

It wouldn’t make sense to fly home for the weekend (your non-work days), only to fly back into Durham for your business meetings on Monday morning.

So, since you’re technically staying in Durham on Saturday and Sunday, between the days when you’ll be conducting business, the total cost of your lodging on the trip is tax deductible, even if you aren’t actually doing any work on the weekend.

It’s not your fault that your client meetings are happening in Durham—the unofficial line dancing capital of America .

Meals and entertainment during your stay

Even on a business trip, you can only deduct a portion of the meal and entertainment expenses that specifically facilitate business. So, if you’re in Louisiana closing a deal over some alligator nuggets, you can write off 50% of the bill.

Just make sure you make a note on the receipt, or in your expense-tracking app , about the nature of the meeting you conducted—who you met with, when, and what you discussed.

On the other hand, if you’re sampling the local cuisine and there’s no clear business justification for doing so, you’ll have to pay for the meal out of your own pocket.

Meals and entertainment while you travel

While you are traveling to the destination where you’re doing business, the meals you eat along the way can be deducted by 50% as business expenses.

This could be your chance to sample local delicacies and write them off on your tax return. Just make sure your tastes aren’t too extravagant. Just like any deductible business expense, the meals must remain “ordinary and necessary” for conducting business.

How Bench can help

Surprised at the kinds of expenses that are tax-deductible? Travel expenses are just one of many unexpected deductible costs that can reduce your tax bill. But with messy or incomplete financials, you can miss these tax saving expenses and end up with a bigger bill than necessary.

Enter Bench, America’s largest bookkeeping service. With a Bench subscription, your team of bookkeepers imports every transaction from your bank, credit cards, and merchant processors, accurately categorizing each and reviewing for hidden tax deductions. We provide you with complete and up-to-date bookkeeping, guaranteeing that you won’t miss a single opportunity to save.

Want to talk taxes with a professional? With a premium subscription, you get access to unlimited, on-demand consultations with our tax professionals. They can help you identify deductions, find unexpected opportunities for savings, and ensure you’re paying the smallest possible tax bill. Learn more .

Bringing friends & family on a business trip

Don’t feel like spending the vacation portion of your business trip all alone? While you can’t directly deduct the expense of bringing friends and family on business trips, some costs can be offset indirectly.

Driving to your destination

Have three or four empty seats in your car? Feel free to fill them. As long as you’re traveling for business, and renting a vehicle is a “necessary and ordinary” expense, you can still deduct your business mileage or car rental costs even when others join you for the ride.

One exception: If you incur extra mileage or “unnecessary” rental costs because you bring your family along for the ride, the expense is no longer deductible because it isn’t “necessary or ordinary.”

For example, let’s say you had to rent an extra large van to bring your children on a business trip. If you wouldn’t have needed to rent the same vehicle to travel alone, the expense of the extra large van no longer qualifies as a business deduction.

Renting a place to stay

Similar to the driving expense, you can only deduct lodging equivalent to what you would use if you were travelling alone.

However, there is some flexibility. If you pay for lodging to accommodate you and your family, you can deduct the portion of lodging costs that is equivalent to what you would pay only for yourself .

For example, let’s say a hotel room for one person costs $100, but a hotel room that can accommodate your family costs $150. You can rent the $150 option and deduct $100 of the cost as a business expense—because $100 is how much you’d be paying if you were staying there alone.

This deduction has the potential to save you a lot of money on accommodation for your family. Just make sure you hold on to receipts and records that state the prices of different rooms, in case you need to justify the expense to the IRS

Heads up. When it comes to AirBnB, the lines get blurry. It’s easy to compare the cost of a hotel room with one bed to a hotel room with two beds. But when you’re comparing significantly different lodgings, with different owners—a pool house versus a condo, for example—it becomes hard to justify deductions. Sticking to “traditional” lodging like hotels and motels may help you avoid scrutiny during an audit. And when in doubt: ask your tax advisor.

So your trip is technically a vacation? You can still claim any business-related expenses

The moment your getaway crosses the line from “business trip” to “vacation” (e.g. you spend more days toasting your buns than closing deals) you can no longer deduct business travel expenses.

Generally, a “vacation” is:

A trip where you don’t spend the majority of your days doing business
A business trip you can’t back up with correct documentation

However, you can still deduct regular business-related expenses if you happen to conduct business while you’re on vacay.

For example, say you visit Portland for fun, and one of your clients also lives in that city. You have a lunch meeting with your client while you’re in town. Because the lunch is business related, you can write off 50% of the cost of the meal, the same way you would any other business meal and entertainment expense . Just make sure you keep the receipt.

Meanwhile, the other “vacation” related expenses that made it possible to meet with this client in person—plane tickets to Portland, vehicle rental so you could drive around the city—cannot be deducted; the trip is still a vacation.

If your business travel is with your own vehicle

There are two ways to deduct business travel expenses when you’re using your own vehicle.

Actual expenses method
Standard mileage rate method

Actual expenses is where you total up the actual cost associated with using your vehicle (gas, insurance, new tires, parking fees, parking tickets while visiting a client etc.) and multiply it by the percentage of time you used it for business. If it was 50% for business during the tax year, you’d multiply your total car costs by 50%, and that’d be the amount you deduct.

Standard mileage is where you keep track of the business miles you drove during the tax year, and then you claim the standard mileage rate .

The cost of breaking the rules

Don’t bother trying to claim a business trip unless you have the paperwork to back it up. Use an app like Expensify to track business expenditure (especially when you travel for work) and master the art of small business recordkeeping .

If you claim eligible write offs and maintain proper documentation, you should have all of the records you need to justify your deductions during a tax audit.

Speaking of which, if your business is flagged to be audited, the IRS will make it a goal to notify you by mail as soon as possible after your filing. Usually, this is within two years of the date for which you’ve filed. However, the IRS reserves the right to go as far back as six years.

Tax penalties for disallowed business expense deductions

If you’re caught claiming a deduction you don’t qualify for, which helped you pay substantially less income tax than you should have, you’ll be penalized. In this case, “substantially less” means the equivalent of a difference of 10% of what you should have paid, or $5,000—whichever amount is higher.

The penalty is typically 20% of the difference between what you should have paid and what you actually paid in income tax. This is on top of making up the difference.

Ultimately, you’re paying back 120% of what you cheated off the IRS.

If you’re slightly confused at this point, don’t stress. Here’s an example to show you how this works:

Suppose you would normally pay $30,000 income tax. But because of a deduction you claimed, you only pay $29,000 income tax.

If the IRS determines that the deduction you claimed is illegitimate, you’ll have to pay the IRS $1200. That’s $1000 to make up the difference, and $200 for the penalty.

Form 8275 can help you avoid tax penalties

If you think a tax deduction may be challenged by the IRS, there’s a way you can file it while avoiding any chance of being penalized.

File Form 8275 along with your tax return. This form gives you the chance to highlight and explain the deduction in detail.

In the event you’re audited and the deduction you’ve listed on Form 8275 turns out to be illegitimate, you’ll still have to pay the difference to make up for what you should have paid in income tax—but you’ll be saved the 20% penalty.

Unfortunately, filing Form 8275 doesn’t reduce your chances of being audited.

Where to claim travel expenses

If you’re self-employed, you’ll claim travel expenses on Schedule C , which is part of Form 1040.

When it comes to taking advantage of the tax write-offs we’ve discussed in this article—or any tax write-offs, for that matter—the support of a professional bookkeeping team and a trusted CPA is essential.

Accurate financial statements will help you understand cash flow and track deductible expenses. And beyond filing your taxes, a CPA can spot deductions you may have overlooked, and represent you during a tax audit.

Learn more about how to find, hire, and work with an accountant . And when you’re ready to outsource your bookkeeping, try Bench .

Join over 140,000 fellow entrepreneurs who receive expert advice for their small business finances

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Everything You Need to Know About Claiming a Mileage Tax Deduction

Text Callout : Key Takeaways - Everything You Need to Know About Claiming a Mileage Tax Deduction

Claiming a tax deduction for mileage can be a good way to reduce how much you owe Uncle Sam, but not everyone is eligible to write off their driving costs.

In the past, taxpayers had more options to deduct mileage and could claim unreimbursed travel while on the job.

“That’s not deductible anymore,” says Michelle Brown, managing director in the Kansas City, Missouri, office of accounting firm CBIZ.

Still, a mileage deduction exists for the following situations:

Business mileage for the self-employed.
Mileage related to medical appointments.
Mileage incurred while volunteering for a nonprofit.

Current Tax Deductible Mileage Rates

“Those are itemized deductions,” says Nicole Davis, a CPA and member of the FreshBooks Accounting Partner Program. “That mileage rate is a lot lower than the business mileage rate.”

For the 2023 tax year, the IRS approved the following standard mileage rates:

Self-employed/Business: 65.5 cents per mile.
Charity: 14 cents per mile.
Medical and Moving: 22 cents per mile.

For the 2024 tax year, standard mileage rates are:

Self-employed/Business: 67 cents per mile.
Medical and Moving: 21 cents per mile.

However, the standard mileage rate for charity is set by statute so the IRS can't adjust it.

Self-Employed Workers: What Mileage Is Deductible

“We never want to confuse a commute as business travel,” Moore says.

How to Claim Mileage on Taxes

Is mileage considered an office expense? No, it doesn’t get lumped in with office expenses on a Schedule C. Instead, mileage can be claimed on line 9 for car and truck expenses.

Taxpayers may want to calculate which option will result in the higher deduction, but for most, deducting mileage is easier and will result in greater tax savings.

“The standard mileage deduction is the gift that keeps giving,” Davis says.

Itemize Your Deductions to Claim Medical and Charitable Mileage

“Typically, you won’t see most people taking advantage of these,” Moore says.

“In order to take advantage (of these deductions), you need to be itemizing,” Brown says.

The IRS Will Want to See Your Records

“It’s something called substantiation,” Moore says. What’s more, the log is supposed to be updated throughout the year as a person drives.

“It could be handwritten; it could be an Excel spreadsheet; it could be an app,” Brown says.

Still, there is no guarantee the IRS will accept documentation compiled after the fact. It's better to keep a log right from the start rather than risk a deduction being disallowed during an audit.

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What Are Travel Expenses?

Understanding travel expenses, the bottom line.

Deductions & Credits
Tax Deductions

Travel Expenses Definition and Tax Deductible Categories

Michelle P. Scott is a New York attorney with extensive experience in tax, corporate, financial, and nonprofit law, and public policy. As General Counsel, private practitioner, and Congressional counsel, she has advised financial institutions, businesses, charities, individuals, and public officials, and written and lectured extensively.

For tax purposes, travel expenses are costs associated with traveling to conduct business-related activities. Reasonable travel expenses can generally be deducted from taxable income by a company when its employees incur costs while traveling away from home specifically for business. That business can include conferences or meetings.

Key Takeaways

Travel expenses are tax-deductible only if they were incurred to conduct business-related activities.
Only ordinary and necessary travel expenses are deductible; expenses that are deemed unreasonable, lavish, or extravagant are not deductible.
The IRS considers employees to be traveling if their business obligations require them to be away from their "tax home” substantially longer than an ordinary day's work.
Examples of deductible travel expenses include airfare, lodging, transportation services, meals and tips, and the use of communications devices.

Travel expenses incurred while on an indefinite work assignment that lasts more than one year are not deductible for tax purposes.

The Internal Revenue Service (IRS) considers employees to be traveling if their business obligations require them to be away from their "tax home" (the area where their main place of business is located) for substantially longer than an ordinary workday, and they need to get sleep or rest to meet the demands of their work while away.

Well-organized records—such as receipts, canceled checks, and other documents that support a deduction—can help you get reimbursed by your employer and can help your employer prepare tax returns. Examples of travel expenses can include:

Airfare and lodging for the express purpose of conducting business away from home
Transportation services such as taxis, buses, or trains to the airport or to and around the travel destination
The cost of meals and tips, dry cleaning service for clothes, and the cost of business calls during business travel
The cost of computer rental and other communications devices while on the business trip

Travel expenses do not include regular commuting costs.

Individual wage earners can no longer deduct unreimbursed business expenses. That deduction was one of many eliminated by the Tax Cuts and Jobs Act of 2017.

While many travel expenses can be deducted by businesses, those that are deemed unreasonable, lavish, or extravagant, or expenditures for personal purposes, may be excluded.

Types of Travel Expenses

Types of travel expenses can include:

Personal vehicle expenses
Taxi or rideshare expenses
Airfare, train fare, or ferry fees
Laundry and dry cleaning
Business meals
Business calls
Shipment costs for work-related materials
Some equipment rentals, such as computers or trailers

The use of a personal vehicle in conjunction with a business trip, including actual mileage, tolls, and parking fees, can be included as a travel expense. The cost of using rental vehicles can also be counted as a travel expense, though only for the business-use portion of the trip. For instance, if in the course of a business trip, you visited a family member or acquaintance, the cost of driving from the hotel to visit them would not qualify for travel expense deductions .

The IRS allows other types of ordinary and necessary expenses to be treated as related to business travel for deduction purposes. Such expenses can include transport to and from a business meal, the hiring of a public stenographer, payment for computer rental fees related to the trip, and the shipment of luggage and display materials used for business presentations.

Travel expenses can also include operating and maintaining a house trailer as part of the business trip.

Can I Deduct My Business Travel Expenses?

Business travel expenses can no longer be deducted by individuals.

If you are self-employed or operate your own business, you can deduct those "ordinary and necessary" business expenses from your return.

If you work for a company and are reimbursed for the costs of your business travel , your employer will deduct those costs at tax time.

Do I Need Receipts for Travel Expenses?

Yes. Whether you're an employee claiming reimbursement from an employer or a business owner claiming a tax deduction, you need to prepare to prove your expenditures. Keep a running log of your expenses and file away the receipts as backup.

What Are Reasonable Travel Expenses?

Reasonable travel expenses, from the viewpoint of an employer or the IRS, would include transportation to and from the business destination, accommodation costs, and meal costs. Certainly, business supplies and equipment necessary to do the job away from home are reasonable. Taxis or Ubers taken during the business trip are reasonable.

Unreasonable is a judgment call. The boss or the IRS might well frown upon a bill for a hotel suite instead of a room, or a sports car rental instead of a sedan.

Individual taxpayers need no longer fret over recordkeeping for unreimbursed travel expenses. They're no longer tax deductible by individuals, at least until 2025 when the provisions in the latest tax reform package are due to expire or be extended.

If you are self-employed or own your own business, you should keep records of your business travel expenses so that you can deduct them properly.

Internal Revenue Service. " Topic No. 511, Business Travel Expenses ."

Internal Revenue Service. " Publication 463, Travel, Gift, and Car Expenses ," Page 13.

Internal Revenue Service. " Publication 5307, Tax Reform Basics for Individuals and Families ," Page 7.

Internal Revenue Service. " Publication 463, Travel, Gift, and Car Expenses ," Pages 6-7, 13-14.

Internal Revenue Service. " Publication 463, Travel, Gift, and Car Expenses ," Page 4.

Internal Revenue Service. " Publication 5307, Tax Reform Basics for Individuals and Families ," Pages 5, 7.

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The Military Wallet

How to Deduct Mileage and Travel Expenses for National Guard and Reserve Drill

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Deducting Mileage and Travel Expenses for Guard/Reserve Duty

Current irs mileage rates, allowable travel expenses, how to track your travel expenses, tracking mileage, lodging and other expenses, what if you didn’t track your expenses, how to claim travel expenses on your taxes, how reserve travel deductions impact your taxes, exceptions to travel deductions, 2018 tax year changes.

In a perfect world, all Guard and reserve members would receive travel reimbursements when they report to drill . Unfortunately, that is not the case. While some members are reimbursed for their travel expenses, not all branches of the military and not all units authorize travel reimbursements for attending regularly scheduled drills.

Thankfully, members of the National Guard and military reserves (including Reserve Corps of the Public Health Service) may be eligible to deduct travel-related expenses when they file their tax returns. If you live more than 100 miles from your duty location and stay overnight, you may be able to deduct travel-related expenses including mileage, hotel and lodging, parking fees, tolls and half the cost of your meals, up to the federal per diem limits.

Prior to the most recent tax system overhaul, the Tax Cuts and Jobs Act of 2017, it was also possible for members of the reserve component to claim expenses if they lived less than 100 miles away from their drill location. However, recent changes to the tax laws have made some changes to these rules. (We’ll cover this in more detail below.)

These deductions can be worth hundreds or even thousands of dollars per year. Let’s take a deeper look at these deductions to see how to qualify and claim them on your taxes.

Eligibility: To be eligible to claim these expenses, you must be a member of a reserve component of the Armed Forces of the United States, including the Army, Navy, Marine Corps, Air Force or Coast Guard Reserve; the Army National Guard of the United States; the Air National Guard of the United States or the Reserve Corps of the Public Health Service. These deductions for travel-related expenses are not available for active-duty service members.
Only duty-related travel: All related travel expenses must be incurred for the sole purpose of serving on official duty in the Guard or reserves. If your travel is not for the sole purpose of official duty, then you cannot claim it as an expense on your tax return.
You must travel at least 100 miles to your duty location: If you traveled more than 100 miles to your duty location, you can deduct your travel expenses to include mileage, lodging, parking, tolls and half the cost of meals. According to the IRS:

This deduction is limited to the regular federal per diem rate (for lodging, meals and incidental expenses) and the standard mileage rate (for car expenses) plus any parking fees, ferry fees and tolls. Claim these expenses on Form 2106 or Form 2106-EZ and carry them to the appropriate line on Form 1040. Expenses in excess of the limit can be claimed only as an itemized deduction on Form 1040, Schedule A. Source .

2021 Mileage Rate: 56 cents per mile.
2022 IRS Mileage Rate: 58.5 cents per mile

According to the IRS , deductible travel expenses while away from home include, but are not limited to, the costs of:

Travel by airplane, train, bus or car between your home and your business destination. If you are provided with a ticket or you are riding free as a result of a frequent traveler or similar program, your cost is zero.
Using your car while at your business destination. You can deduct actual expenses or the standard mileage rate, as well as business-related tolls and parking fees. If you rent a car, you can deduct only the business-use portion for the expenses.
Fares for taxis or other types of transportation between the airport or train station and your hotel, the hotel and the work location, and from one customer to another, or from one place of business to another.
Meals and lodging.
Tips you pay for services related to any of these expenses.
Dry cleaning and laundry.
Business calls while on your business trip. (This includes business communications by fax machine or other communication devices.)
Other similar ordinary and necessary expenses related to your business travel. (These expenses might include transportation to and from a business meal, public stenographer’s fees, computer rental fees and operating and maintaining a house trailer.)
Shipping of baggage, sample or display material between your regular and temporary work locations.

If you plan to track your mileage and other expenses for tax purposes, then you need to keep clean tax records . Here are some tips:

A good way to track your mileage is to keep a mileage logbook in your vehicle. Record the mileage on your vehicle when you start and stop your trip, and write the total number of miles you drove. Record this for each trip you take over the course of the year.

You can record mileage with a standard notebook, mileage logbook, smartphone app or with software such as Quicken. Be sure to include the journey to and from your home, as well as all related travel to and from your hotel and the base, if it is for official duty.

It’s always a good practice to keep all related receipts if you are taking a tax deduction, particularly if you will be adding up multiple months’ worth of expenses. The amount of expenses you can deduct on Form 1040 is limited to the regular federal per diem rate (for lodging, meals and incidental expenses) and the standard mileage rate (for car expenses), plus any parking fees, ferry fees and tolls.

In some cases, you may not get receipts for all expenses, such as parking and tolls. In these cases, be sure to document the expenses in your travel notebook or by other means. For example, you could print a receipt for your tolls if you have a toll pass that tracks each toll you pass.

If you found out about this deduction partway through the year, you can still deduct your travel, even if you don’t have excellent records. However, you need to be careful – it is up to you to prove your expenses if you are audited. A good way to get a reasonable estimate of your travel is to use Google Maps, MapQuest or another online map service to determine the distance from your home to your unit.

Be sure to document the days you traveled and the number of trips, and you should have a fairly accurate estimate of your miles traveled. It would be more difficult to determine how much you may have paid for food, tolls and other expenses if you don’t have good records. It may be a good idea to forget about the other expenses if you can’t come up with a reasonably accurate list of expenses. Just work on keeping records from this point forward.

At the end of the year, add your related travel expenses. You will use this information to fill out Form 2106, Employee Business Expenses ( PDF ), or Form 2016-EZ, Unreimbursed Employee Business Expenses (PDF) – Form 2106 instructions . You will use this information when you fill out tax Form 1040.

If you use a software program to file your taxes , then your program will likely ask you if you have any related travel expenses for your duty with the Guard or reserves. If you use a professional tax service, then be sure to give this information to your tax preparer – he or she will take care of it for you.

You can find related information in IRS Publication 3, the Armed Forces Tax Guide , and in our article covering military tax tips .

The deduction for travel-related expenses is a top-of-the-line tax deduction to your gross income, meaning it directly reduces your income before your taxes are calculated. As an example, if your income for the year was $50,000 and you had $2,500 in travel-related expenses, you would subtract the $2,500 from your $50,000 income, leaving your taxable income at $47,500. Of course, this does not include other tax deductions you may be eligible to receive. So you may be taxed on a lower percentage of your income after accounting for all eligible tax deductions.

You cannot claim mileage or other expenses that are reimbursed . For example, some Guard or reserve units pay for lodging when their members travel from out of town for drill weekends. If your unit puts you up in a hotel for your drill weekend or reimburses your expense, you cannot also claim that as a tax deduction. That would be double-dipping, and fraudulent. You cannot also claim mileage expenses if your unit reimburses you for the miles you drove. This goes for all related expenses and possible reimbursements.

The Tax Cuts and Jobs Act of 2017 brought many changes to the U.S. tax system. The standard deduction was increased starting in tax year 2018. The rates almost doubled from 2017 to 2018, increasing from $6,350-$12,000 for single taxpayers and from $12,700-$24,000 for couples.

Other changes included changing the income tax brackets, lowering tax rates and reducing or eliminating certain itemized deductions. Many miscellaneous itemized deductions were eliminated, including the ability to deduct unreimbursed employee expenses on Schedule A of their taxes.

Guard and reserve members who travel less than 100 miles from their home to perform their military duties are no longer eligible to deduct their mileage on their taxes. Prior to these changes, they were able to claim travel expenses as a miscellaneous itemized deduction, which was subject to a 2% limit (travel expenses must be at least 2% of your adjusted gross income before you can claim the deduction on your taxes).

Members may be authorized reimbursement for these expenses if offered by their branch of service or unit. Otherwise, the expense is now completely out of pocket.

Net impact of change: The increased standard deduction likely makes up for the inability to deduct travel expenses as a miscellaneous itemized deduction.

The changes to the 2018 tax year mean you only need to track your mileage if you travel over 100 miles each way to your unit. That said, this is a very valuable deduction and is absolutely worth taking if you are eligible.

For example, a 100-mile journey each way turns into a 200-mile round trip. At $0.535 per mile, that adds up to a $107 deduction for each drill weekend. Twelve of those would equal a $1,284 deduction. This is the bare minimum situation and doesn’t include other expenses such as food or tolls.

My unit is approximately 210 miles from my residence. That puts my annual mileage around 5,040. At the 2018 rate of $0.535 per mile, that comes out to an above-the-line tax deduction of $2,696.40. That has a big impact when I file my taxes each year. Bottom line: Be sure to document your travel mileage and other expenses. They will add up quickly and could potentially put hundreds of dollars or more back in your pocket.

About Post Author

Ryan Guina is The Military Wallet’s founder. He is a writer, small business owner, and entrepreneur. He served over six years on active duty in the USAF and is a current member of the Tennessee Air National Guard.

Ryan started The Military Wallet in 2007 after separating from active duty military service and has been writing about financial, small business, and military benefits topics since then.

Featured In: Ryan’s writing has been featured in the following publications: Forbes, Military.com, US News & World Report, Yahoo Finance, Reserve & National Guard Magazine (print and online editions), Military Influencer Magazine, Cash Money Life, The Military Guide, USAA, Go Banking Rates, and many other publications.

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June 12, 2023 at 4:35 pm

In addition to uniform dry cleaning, can sewing new rank emblems be deducted as well? In addition is there any other items that are deductible?

Thomas G says

February 14, 2023 at 7:17 am

How do you deduct the air travel if you fly? I only saw an option for mileage reimbursement.

Ryan Guina says

September 27, 2023 at 9:58 am

Thomas, you can deduct the cost of the airline tickets. Keep your receipts in case you are ever audited.

Shannan says

April 14, 2019 at 6:37 pm

Do I deduct reservists mileage under vehicle expenses or travel expenses? The one way commute is over 100 miles

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Meal and vehicle rates used to calculate travel expenses for 2023

The rates for 2024 will be available on our website in 2025 . If you are an employer, go to Automobile and motor vehicle allowances .

Meal and vehicle rates for previous years are also available.

The following applies to the 2023 tax year.

To calculate meal and vehicle expenses, you may choose the detailed or simplified method. Your total travel expenses equal the total of the value of travel assistance provided by your employer and the travel expenses incurred by you. Include any travel expenses paid by your employer.

Detailed method – This method allows you to claim the actual amount that you spent. Keep your receipts in case the CRA asks to see them at a later date.

Simplified method – This method uses a flat rate for meals and vehicle expenses. Although you do not need to keep detailed receipts for actual expenses if you choose to use this method, the CRA may still ask you to provide some documentation to support your claim.

Meal expenses

If you choose the detailed method to calculate meal expenses, you must keep your receipts and claim the actual amount that you spent.

If you choose the simplified method , claim in Canadian or US funds a flat rate of $23 per meal , to a maximum of $69 per day (sales tax included) per person, without receipts. Although you do not need to keep detailed receipts for actual expenses if you choose to use this method, the CRA may still ask you to provide some documentation to support your claim.

Vehicle expenses

If you choose the detailed method to calculate vehicle expenses, you must keep all receipts and records for the vehicle expenses you incurred for moving expenses or for northern residents deductions during the tax year; or during the 12-month period you choose for medical expenses.

Vehicle expenses include:

operating expenses such as fuel, oil, tires, licence fees, insurance, maintenance, and repairs
ownership expenses such as depreciation, provincial tax, and finance charges

Keep track of the number of kilometres you drove in that time period, as well as the number of kilometres you drove specifically for the purpose of moving or medical expenses, or for the northern residents deductions. Your claim for vehicle expenses is the percentage of your total vehicle expenses that relate to the kilometres driven for moving or medical expenses, or for northern residents deductions.

For example, if you drove 10,000 km during the year, and half of that was related to your move, you can claim half of the total vehicle expenses on your tax return.

Although you do not need to keep detailed receipts for actual expenses if you choose to use the simplified method , the CRA may still ask you to provide some documentation to support your claim. Keep track of the number of kilometres driven during the tax year for your trips relating to moving expenses and northern residents deductions, or the 12-month period you choose for medical expenses. To determine the amount you can claim for vehicle expenses, multiply the number of kilometres by the cents/km rate from the chart below for the province or territory in which the travel begins.

Table of 2023 kilometre rates for the province or territory

Page details.

Implementing Expenses

How You Set Up a Mileage Expense Policy

You can set up a mileage expense policy to allow employees to claim mileage reimbursement for travel expenses incurred by using their personal vehicles for business activities. In most countries, the central government determines the mileage reimbursement rates.

Based on government mileage regulations and your company policy, you can set up a mileage expense policy by defining:

Mileage eligibility rules

Mileage rate determinants

Mileage add-on rates

The application automatically calculates the mileage reimbursement based on your definition of the eligibility rules, rates determinants, and add-on rates.

In the Setup and Maintenance work area, use the following:

Offering: Financials

Functional Area: Expenses

Task: Manage Policies by Expense Category

On the Manage Policies by Expense Category page, click the Create Policy choice list and select Mileage . The create Mileage Policy page appears.

Mileage Eligibility Rules

In the Mileage Eligibility Rules section, you specify the rules that determine whether employees can claim mileage reimbursement for using their personal or company provided vehicles. The following table lists the mileage eligibility rules and their descriptions.

Mileage Rate Determinants

In the Mileage Rate Determinants section, you specify the determinants on which the mileage reimbursement policy is based. The following table lists selected mileage rate determinants and their descriptions.

Mileage Add-On Rates

In the Add-On Rates section, your company can add passenger rates and company-specific rates for inclusion in the mileage reimbursement policy. The following table lists additional rate types and their descriptions.

After you finish setting up the mileage expense policy, you must:

Complete the mileage rate spreadsheet and load the spreadsheet to the application. Or, complete the Create Rates dialog box, depending on the complexity of the policy.

Activate the mileage reimbursement policy.

Set up cumulative mileage determinants when applicable.

Assign the mileage reimbursement policy to expense types.

MileIQ Inc.

GET — On the App Store

What Is a Medical Mileage Deduction and How to Claim It?

Medical mileage deduction is a form of financial relief for taxpayers who travel for various medical purposes. Mileage-based tax deductions can be claimed for various types of doctor visits, medical procedures, therapy, and even trips to pharmacies.

The medical mileage rate set for 2024 is 21 cents per mile. You may be eligible for a considerable tax deduction if you frequently travel for medical reasons.

The Internal Revenue Service has a set of guidelines to determine what is considered medical travel. If you want to claim this deduction. The key requirement is tracking and recording mileage for each trip, including its purpose.

What is a medical mileage deduction?

Medical mileage deduction is a tax relief method set by the Internal Revenue Service to make necessary medical travel less financially impactful for those in need and their families. It’s based on the standard mileage rates set by the IRS annually, along with mileage rates for business, charitable, and moving-related travel.

Tax deductions for medical travel can significantly help your budget, especially if you travel long distances for doctor’s appointments and hospital visits. However, if you’re in that unfortunate position, you must follow crucial IRS guidelines to get your tax deduction fair and square.

Eligibility criteria for medical mileage deduction

The general rule for claiming tax deductions for any medical expenses is that their total must surpass 7.5% of your adjusted gross income. Mileage is also included in that rule. It’s a quite significant threshold that makes a significant percentage of people ineligible. The idea behind that is to ensure that only those most financially affected by health issues can claim tax deductions.

There’s also a set of regulations for the exact types of travel that qualify for deduction. According to the IRS, you can only count trips for appointments and procedures related to necessary medical care, including physical and mental health.

It means you can safely count the miles for all doctor visits and appointments related to diagnostics and treatment of a specific physical or mental condition. You can also include trips to the pharmacy, but only to purchase prescribed medicine. And lastly, you can claim medical mileage deduction for trips concluded as a parent or a caregiver.

You can’t claim mileage tax deductions on trips that can’t be considered necessary or aren’t linked to any medical condition. It may include appointments and procedures related to aesthetic medicine and trips to the pharmacy for non-prescribed medication.

Calculation your medical mileage deduction

The medical mileage rate for 2024 is 21 cents per mile.

Using this rate, you can easily calculate your tax deduction and fill your tax return with an appropriate number. Here’s a simple formula to calculate medical mileage deduction:

Number of eligible miles driven * medical mileage rate ($0.21 in 2024) = tax deduction

For example, let’s say you’ve recorded 500 miles during all your medically purposed trips throughout the year. In that case, you may be eligible for a $105 deduction, as shown in the equation below.

500 * $0.21 = $105

However, bear in mind that you will only be eligible for tax deduction if your total medical expenses (treatments, therapy, equipment, insurance premiums, etc.), including mileage, are higher than 7.5% of your adjusted gross income.

In addition to that, remember that the IRS updates standard mileage rates every year, so make sure you’re using the correct rate in your calculations. Using incorrect rates or missing crucial documentation may even lead to an IRS audit. In the best-case scenario, you may receive a smaller tax deduction than you’re entitled to.

As you can see, understanding and accurately calculating medical mileage deduction can significantly impact your tax savings. Staying up to date with the current rates and keeping precise mileage records can help you save quite a lot of money. The IRS offers a standard deduction amount that automatically reduces your taxable income. In some cases, the standard deduction might be higher than the total itemized deductions you could claim, including medical mileage. It's important to compare the standard deduction to your total itemized deductions (including medical mileage) to see which option gives you a bigger tax benefit.

Formula how to calculate medical mileage deduction with example

Documentation and recordkeeping

Accurate documentation and recordkeeping are necessary if you’re considering claiming a tax deduction for medical mileage. The IRS will require you to provide and keep the documents that prove the distance and purpose of your trip.

A couple of decades ago, physical mileage logs were quite common. Now, you can use a simple spreadsheet or a dedicated app like MileIQ that does most of the work for you. Whichever method you choose, the crucial pieces of information to keep track of are:

Date of each trip.
Purpose (therapy, procedure, pharmacy visit).
The actual mileage (including each trip's starting and ending point).
Proof of medical necessity (doctor’s referral, prescription, test results)
Any other documentation that confirms the medical purpose of a trip.

Thorough recordkeeping will help you maximize your tax deduction but can also keep you safe in case of an IRS audit. And while we’re on that, it’s also worth noting that you should keep all relevant documentation for up to five years, according to the IRS guidelines.

Download MileIQ to start tracking your drives

Automatic, accurate mileage reports.

How to claim a medical mileage deduction

Assuming you’ve diligently documented all your medical trips throughout the year and calculated the deduction using the current rate, you should be ready to claim the deduction on your tax return. Fill in your medical expenses on line 1 of Schedule A .

As you’ll see, the line refers to all medical and dental expenses, so you should add calculated mileage to all the other medically motivated purchases. According to a very extensive list provided by the IRS, you can include expenses such as:

prescription medicine
insurance premiums
wheelchair ramps, elevators, railings, and other home improvements related to disability
car modifications related to disability
medical equipment (hearing aid, crutches, contact lenses, and much more)
guide dog and Braille books (if their cost is higher than regular editions)

The full list is available on the IRS website .

Remember to itemize your deductions and list them individually on Schedule A to claim the standard mileage deduction.

Claiming the medical mileage deduction can be complicated, especially if you’re doing it for the first time. However, with a clear understanding of the process and accurate recordkeeping, you can successfully claim this deduction and potentially save a significant amount on your taxes.

Common mistakes to avoid

It’s always nice to get a substantial tax deduction. But there are mistakes to be made that can give you a headache caused by an IRS audit instead.

Perhaps the most common mistake is including costs or trips that the IRS doesn’t consider deductible. So, if you have any doubts about something, check the list of qualifying expenses. You should also verify that all the trips you’ve included actually had medical purposes.

Another frequent reason for the IRS audit is missing documentation. If you’ve misplaced a parking slip or a crucial receipt and can’t get a copy, it’s better to omit that cost from your calculations.

Regardless of the type of error, remember that the IRS can and will ask for proof, so it’s best to double-check everything before submitting a tax return.

And finally, remember that mileage rates are changed annually. If you’ve written down a calculation formula somewhere last year, you probably shouldn’t use it this time. Over the last 10 years, we haven’t had a situation where medical mileage rates remained unchanged year to year.

Medical rates over the years

The IRS adjusts the standard medical mileage rates to reflect the changing economic conditions. This includes factors like:

fuel expenses
vehicle upkeep
vehicle depreciation

Before calculating your medical mileage, always refer to the current mileage rates. Traditionally, the IRS announces new rates for the year in the middle of December. However, a few times in the last decades, the rates had been updated twice over the course of a year to reflect rapidly changing economic conditions. The most notable example in recent years was the change in 2022 due to the Covid-19 pandemic.

Medical mileage rates 2023

The medical mileage rate for 2023 was 22 cents per mile. The rate remained consistent with the previous year, which is quite rare.

Medical mileage rates 2022

The standard medical mileage rate for 2022 was initially 18 cents per mile and then increased to 22 cents per mile from July 1st.

This significant change was motivated by the global economic conditions caused by the pandemic, particularly by a significant increase in gasoline prices.

Medical mileage rates 2021

With just 16 cents per mile in 2021, the IRS set the lowest rate for medical travel in the last two decades. The change was motivated by dropping gas prices and economic stability in the previous years.

Medical mileage rates 2020

The medical mileage rate for 2020 was set at 17 cents per mile. The rate was lower than the rate of the previous year.

Charitable Mileage Deduction

In addition to medical and business mileage, you can also claim charitable mileage deductions for travels related to charitable activities.

The standard mileage rate for charitable travel is 14 cents per mile, which has remained unchanged for decades. Similar to the medical mileage deduction, it requires maintaining sufficient and complete records to prove charitable activity. However, there are certain differences in what qualifies as deductible mileage.

Tracking mileage as a way to preserve health and wealth

If you find yourself driving long distances for medical reasons, tracking medical mileage can significantly help your budget. We hope this article helped you better understand how to track and claim deductions on your tax return.

As long as you keep your documentation organized and use the correct mileage rate for the year, you should be good to go.

Can you write off travel expenses for medical purposes?

Yes, you can write off travel expenses for medical purposes, including transportation costs to reach a medical treatment facility and deducting mileage for travel to doctor's offices, pharmacies, and therapy sessions, as well as parking fees and tolls. However, keeping detailed records of these expenses for tax purposes is important.

Still tracking miles by hand?

Check out more mileage guides.

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Personal tax

Rates and allowances: travel — mileage and fuel allowances

Rates and allowances for travel including mileage and fuel allowances.

Travel — mileage and fuel rates and allowances

The attached document is classified by HMRC as guidance and contains information about rates and allowances for travel, including mileage and fuel allowances.

Rates for fuel charges have been updated for 2024 to 2025.

Rates for fuel charges have been updated for 2023 to 2024.

Rates for fuel charges have been updated for 2022 to 2023.

Rates for fuel charges have been updated for 2021 to 2022.

Information has been updated to include tax years 2018 to 2019 and 2019 to 2020, also removed some older details.

Rates, allowances and duties have been updated for the tax year 2017 to 2018.

First published.

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Topic no. 510, Business use of car

Depreciation

Generally, the Modified Accelerated Cost Recovery System (MACRS) is the only depreciation method that can be used by car owners to depreciate any car placed in service after 1986. However, if you used the standard mileage rate in the year you place the car in service and change to the actual expense method in a later year and before your car is fully depreciated, you must use straight-line depreciation over the estimated remaining useful life of the car. There are limits on how much depreciation you can deduct. For additional information on the depreciation limits, please refer to Topic no. 704 . Publication 463 explains the depreciation limits and discusses special rules applicable to leased cars.

Recordkeeping

The law requires that you substantiate your expenses by adequate records or by sufficient evidence to support your own statement. For further information on recordkeeping, refer to Topic no. 305 .

Where to deduct

Deduct your self-employed car expenses on:

Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship) or
Schedule F (Form 1040), Profit or Loss From Farming if you're a farmer.

If you're an Armed Forces reservist, a qualified performing artist, or a fee-basis state or local government official, complete Form 2106, Employee Business Expenses to figure the deductions for your car expenses.

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COMMENTS

What Are the Mileage Deduction Rules?
Mileage for medical care is included in your medical deduction. The rate is $0.16 for 2023. Mileage for volunteer work is included in your charitable deduction. The rate is $0.14for 2023. Limitations to know about when claiming mileage on your taxes. There are a few times when you won't be permitted to claim the standard mileage rate option.
Publication 463 (2023), Travel, Gift, and Car Expenses
You figure the deductible part of your air travel expenses by subtracting 7 / 18 of the round-trip airfare and other expenses you would have had in traveling directly between New York and Dublin ($1,250 × 7 / 18 = $486) from your total expenses in traveling from New York to Paris to Dublin and back to New York ($750 + $400 + $700 = $1,850).
Everything You Need to Know About Claiming a Mileage Tax Deduction
For the 2023 tax year, the IRS approved the following standard mileage rates: Self-employed/Business: 65.5 cents per mile. Charity: 14 cents per mile. Medical and Moving: 22 cents per mile. For ...
Topic no. 511, Business travel expenses
This deduction is limited to the regular federal per diem rate (for lodging, meals, and incidental expenses) and the standard mileage rate (for car expenses) plus any parking fees, ferry fees, and tolls. Claim these expenses on Form 2106, Employee Business Expenses and report them on Form 1040, Form 1040-SR, or Form 1040-NR as an adjustment to ...
Understanding business travel deductions
Tax Tip 2023-15, February 7, 2023 — Whether someone travels for work once a year or once a month, figuring out travel expense tax write-offs might seem confusing. The IRS has information to help all business travelers properly claim these valuable deductions.
How To Calculate Mileage Deductions on Your Tax Return
To claim mileage for traveling for volunteering work, you can use the standard mileage rate for charity work or you can deduct the cost of oil, gas, tolls, and parking fees. Mileage Rates for 2022 and 2023 . ... "Publication 463 (2022), Travel, Gift, and Car Expenses." IRS.
Federal Tax Laws on Mileage Reimbursement
The total of all expenses you report in this category must be reduced by two percent of your adjusted gross income, or AGI. For example, if your only miscellaneous deduction is $5,000 of mileage expenses in a year you report an AGI of $50,000, you must reduce the deduction by $1,000 ($50,000 x 0.02 = $1,000).
IRS mileage rate: How to claim mileage deductions on 2022 tax returns
The IRS business standard mileage rate cannot be used to claim an itemized deduction for unreimbursed employee travel expenses under the Tax Cuts and Jobs Act, which remains in effect through 2025.
How to Claim Mileage Tax Deduction & 2022 IRS Rules
What are the standard mileage tax deduction rates after 2022? For 2023, the standard mileage rates are: 65.5 cents per mile for business, up 3 cents from the midyear increase of 2022. 22 cents per mile for medical, consistent with the midyear rate set for second half of 2022. 14 cents per mile for charity, unchanged from 2022.
How to Deduct Business Travel Expenses: Do's, Don'ts, Examples
To be able to claim all the possible travel deductions, your trip should require you to sleep somewhere that isn't your home. 2. You should be working regular hours. In general, that means eight hours a day of work-related activity. It's fine to take personal time in the evenings, and you can still take weekends off.
Track Your Mileage for Taxes in 8 Easy Steps
For 2023, the federal tax deduction for mileage is 65.5 cents per mile for business use, 22 cents per mile for medical purposes and if you're claiming moving expenses as an active military member ...
Standard Mileage vs. Actual Expenses: Getting the Biggest ...
Since the Uber driver-partner used the vehicle for business 75% of the time, the actual expenses deduction is $8,475 ($11,300 x .75 = $8,475). Using the standard mileage rate method with these same numbers, the driver would multiply the number of miles driven for business (30,000) by the standard mileage rate (65.5 cents per mile for 2023 ...
How to Deduct Travel Expenses (with Examples)
Actual expenses method; Standard mileage rate method; Actual expenses is where you total up the actual cost associated with using your vehicle (gas, insurance, new tires, parking fees, parking tickets while visiting a client etc.) and multiply it by the percentage of time you used it for business. If it was 50% for business during the tax year ...
Everything You Need to Know About Claiming a Mileage Tax Deduction
Charity: 14 cents per mile. Medical and Moving: 22 cents per mile. For the 2024 tax year, standard mileage rates are: Self-employed/Business: 67 cents per mile. Charity: 14 cents per mile. Medical ...
Employee Mileage Reimbursement: What You Need to Know
The IRS sets a standard mileage reimbursement rate. For 2020, the federal mileage rate is $0.575 cents per mile. Reimbursements based on the federal mileage rate aren't considered income, making ...
Standard mileage rates
If you use your car for business, charity, medical or moving purposes, you may be able to take a deduction based on the mileage used for that purpose. 2023 mileage rates. The standard mileage rates for 2023 are: Self-employed and business: 65.5 cents/mile Charities: 14 cents/mile Medical: 22 cents/mile Moving (military only): 22 cents/mile
Travel Expenses Definition and Tax Deductible Categories
Travel expenses are costs associated with traveling for the purpose of conducting business-related activities. Travel expenses can generally be deducted by employees as non-reimbursed travel ...
What is mileage reimbursement?
Members of the armed forces are eligible for reimbursement for expenses incurred while moving. This deduction is only for qualified active duty members. The mileage reimbursement rate for medical and moving purposes is 22 cents per mile driven. Mileage reimbursement requirements: What's covered and what's not.
VA Travel Pay Reimbursement
File a claim for general health care travel reimbursement online. General health care travel reimbursement covers these expenses for eligible Veterans and caregivers: Regular transportation, such as by car, plane, train, bus, taxi, or light rail. Approved meals and lodging expenses. You can file a claim online through the Beneficiary Travel ...
How to Deduct Mileage and Travel Expenses for National Guard and
How to Claim Travel Expenses on Your Taxes. At the end of the year, add your related travel expenses. You will use this information to fill out Form 2106, Employee Business Expenses , or Form 2016-EZ, Unreimbursed Employee Business Expenses (PDF) - Form 2106 instructions. You will use this information when you fill out tax Form 1040.
How to Create Your Own Expense Report
An expense report can be many things: a mileage log used for reimbursement, a receipt of hotel and parking expenses, or an account of meals and entertainment expenses.
Expenses and benefits: business travel mileage for employees' own
24p. Bikes. 20p. 20p. Example. Your employee travels 12,000 business miles in their car - the approved amount for the year would be £5,000 (10,000 x 45p plus 2,000 x 25p). It does not matter if ...
Meal and vehicle rates used to calculate travel expenses for 2023
Meal expenses. If you choose the detailed method to calculate meal expenses, you must keep your receipts and claim the actual amount that you spent. If you choose the simplified method, claim in Canadian or US funds a flat rate of $23 per meal, to a maximum of $69 per day (sales tax included) per person, without receipts.
How You Set Up a Mileage Expense Policy
You can set up a mileage expense policy to allow employees to claim mileage reimbursement for travel expenses incurred by using their personal vehicles for business activities. In most countries, the central government determines the mileage reimbursement rates.
What Is a Medical Mileage Deduction and How to Claim It?
April 16, 2024. Medical mileage deduction is a form of financial relief for taxpayers who travel for various medical purposes. Mileage-based tax deductions can be claimed for various types of doctor visits, medical procedures, therapy, and even trips to pharmacies. The medical mileage rate set for 2024 is 21 cents per mile.
Rates and allowances: travel
Details. The attached document is classified by HMRC as guidance and contains information about rates and allowances for travel, including mileage and fuel allowances. Published 13 June 2013. Last ...
Textravel
Fiscal 2024 Travel Reimbursement Rates Employees. In-State or Out-of-State Meals and Lodging: Refer to the U.S. General Services Administration's ... Automobile Mileage: 67 cents per mile (Jan. 1 - Dec. 31, 2024) Aircraft Mileage: $1.76 per mile (Jan. 1 - Dec. 31, 2024) Key Officials.
Here's what taxpayers need to know about business related travel
Tax Tip 2022-104, July 11, 2022 — Business travel can be costly. Hotel bills, airfare or train tickets, cab fare, public transportation - it can all add up fast. The good news is business travelers may be able off-set some of those cost by claiming business travel deductions when they file their taxes.
Topic no. 510, Business use of car
Standard mileage rate - For the standard mileage rate for the cost of operating your car for business, refer to Standard mileage rates or Publication 463, Travel, Entertainment, Gift, and Car Expenses. To use the standard mileage rate, you must own or lease the car and: You must not operate five or more cars at the same time, as in a fleet ...
PDF MILEAGE Reimbursement Rate: Jan 1, 2024 Mileage rates: Tier 1, 0.67
TRAVEL MATRIX AND INFORMATION . MILEAGE Reimbursement Rate: Jan 1, 2024 Mileage rates: Tier 1, 0.67, Tier 2, 0.21 . MEAL and LODGING PER DIEM EFFECTIVE Oct 01.2023 . Note: Travel expense must NOT be claimed prior to travel taking place. Note: Must be in travel status to claim meals. EA. TXIX Volunteers: Non-overnight travel (taxable meals ...

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