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Bankrate's 2010 Tax Guide
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2009-2010 mileage deduction amounts

Each year the Internal Revenue Service determines how much drivers can write off for various types of travel. Any changes are based on an annual study of the fixed and variable costs of operating a vehicle.

Low inflation is usually a good thing. But when it comes to the Internal Revenue Service's standard mileage rates, it means that taxpayers will get smaller tax deductions for their various types of travel.

Gasoline prices were among the consumer costs that abated a bit, so in 2009 the standard mileage rates were reduced from the amounts allowable during the last half of 2008. That trend continues in 2010, with deductible mileage amounts dropping substantially this year.

While the reimbursement rate for business mileage, as well as qualified moving and medical travel, is adjusted annually for inflation, the rate allowed for miles driven in aid of a charity is set by statute at 14 cents per mile. In times of extraordinary disaster, Congress has increased the standard mileage rate for miles driven in connection with a specific charitable cause, such as was the case following Hurricane Katrina. However, such changes are temporary.

Below are the inflation adjusted per-mile amounts you can claim for different types of tax-deductible travel in 2009, as well as 2010 rates for your planning purposes.

Mileage rate deductions
BusinessMovingMedicalCharitable
2009 per-mile rates55 cents24 cents24 cents14 cents
2010 per-mile rates50 cents16.5 cents16.5 cents14 cents

 

 

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