Home | Tax Blog | Tax Evaluation | Resources | Common Tax Questions | Back Taxes | Contact Us

IRS Increases Deductible Standard Mileage Rates Limit

August 16th

standard mileage deductionThe Internal Revenue Service has recently announced an increase in standard mileage rates taxpayers can claim for the final six months of 2011. The rate has been raised from 51 cents to 55.5 cents per mile for businesses, and from 19 cents to 23.5 cents per mile for medical and moving expenses. The per mile tax deduction for charitable expenses remains unchanged at 14 cents.

The increases in the standard mileage rates were designed to reflect this year’s rising gas prises. Such changes ought to have a significant impact on individual Americans.

What Kind of Impact Will These Changes Have?

The business standard mileage rate is used by many taxpayers to calculate the deductible costs of using a car for business. This rate is typically used in lieu of tracking actual costs. The rate can also be used as a benchmark by which the federal government and many businesses can reimburse employees for mileage costs.

Unfortunately, the charitable rate remains unchanged since it was originally set at a 14 cent deduction in 1998. However, in its recent push for simplification of the tax code, the American Institute of CPAs has asked Congress to consider allowing the IRS to set all three mileage rates – business, medical, and charitable – at the same level.

This new, simplified proposal would greatly increase the ease with which individual Americans would use these rates. Taxpayers would only have to consider one rate, instead of three, when filing their tax returns. This measure should reduce the amount of inaccurate tax returns leading to tax audits.

 
 
RSS

Subscribe Now
Social

Follow on FaceBook
News & Events
Monday, August 01, 2011

We are excited to launch our new site LeeTaxHelp.com.
Monday, September 05, 2011

If you think you might be need the advice of a Dallas Bankruptcy Attorney you can view on sister site at http://leebankruptcy.com
Categories
Back Taxes (5) General Tax Information (65) News (39) Payroll Taxes (5) Tax audit (10) Tax Debts (3) Tax deductions (16) Tax Fraud (4) Tax Laws (14) Tax Liens (10) Tax payment plans (14) Tax programs (21) Tax Scams (6) Uncategorized (2)
Recent Posts
Advantages of Using a Tax Debt Lawyer
Tax Debt Relief In 2014
Tax Debt Installment Agreements
Understanding the Five Tax Debt Strategies
Back Taxes: What You Can Do
Archives
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011