Current Allowable Automobile Mileage Tax Deduction 2009, 2010
Another great advantage to itemizing your tax return is the deductions you can receive from claiming your vehicle mileage. There are many reasons that your mileage may be tax deductible. You can choose to take these optional standard rates if you are an employee, self-employed, and all other taxpayers if you have vehicle operating costs that fall into tax deductible categories.
What is Deductible?
Miles Driven for Business
Medical Travel Mileage
Moving Travel Mileage
Servicing for Charitable Organization Mileage
How Much Can I Deduct
50.5 Cents Per Mile For Business
14 Cents Per Mile For Charitable
20 Cents Per Mile For Medical
20 Cents Per Mile For Moving
The rate for business travel has recently increased. It was previously at 48.5 cents per mile for 2007. Due to the current state of the economy the IRS has offered an even higher tax break that will cover mileage deductions from July 1st, 2008 through December 31st, 2008. The rate for business purposes for this six month window will be 58.5 cents per mile.
The rate for moving or medical purposes for this six month window will be 27 cents per mile. The deduction for charitable travel will remain the same. The reasons for this increase are the higher price with fuel and the increased price of vehicles. The standard rate for business, moving, and medical comes from an annual study that is done to determine the costs of operating a vehicle. The IRS will usually hire an outside company to complete this study.
To learn more about mileage tax deductions please visit TurboTax Online. TurboTax Online offers free tax calculators to help you maximize your deductions.
Related posts:
- 2008, 2009 Federal IRS Car & Vehicle Mileage Deduction for Taxes We are all familiar with the prices at the pump....
- IRS Home Mortgage Interest Income Tax Deduction When looking for deductions as a homeowner, make sure that...
- List of Small Business Tax Deductions You are Entitled To As a helpful reminder when you prepare to file your...
- Automobile Loans – What Consumer credit Rating Do You absolutely need to shop for a Used car? When hunting for a fresh vehicle, 1 of the most...
- Order Automobile Parts On the Web And Save Money used car dealers Chicago is one of those topics the...
Comments are closed for this entry.