With gas prices soaring, it makes even more sense to be sure you’re taking advantage of all tax deductible mileage advantages. Liberty Tax Service reminds you that the miles you drive for some business, medical, charitable, moving, and educational purposes are deductible. Resolve to keep better track of mileage by recording your odometer reading on January 1st, and then keeping careful records of mileage throughout 2008. The IRS has released these mileage deductions for 2008:
- Business mileage: to 50.5 cents per mile from 48.5 cents per mile in 2007
- Medical or moving mileage: to 19 cents per mile from 20 cents per mile in 2007
- Charitable mileage: stays at 14 cents per mile for 2008
The IRS considers business mileage those miles driven from the office to an auxiliary business location. Commuting miles, the miles driven from home to an office are not allowed. Students who are taking courses that are required by their employer, or are work-related, may deduct this mileage at the business mileage rate.
The deductible amount for mileage during a move and for medical mileage is 19 cents per mile. Medical miles can be claimed for miles driven to and from the doctor or dentist, and to and from a pharmacy to pick up a prescription.
Charitable mileage is deductible. If you volunteer for a charitable or non-profit organization, your mileage is deductible to and from meetings and functions.
Good recordkeeping practices are required to document your deductible mileage, and separate it from commuting and personal mileage. Be sure to document this mileage by keeping a log or other written record.
Keeping Your Data Protected