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.Bankrate's 2010 Tax GuideTax tips and toolsHow do I … ?Filing and refundsReal estate and capital gainsFamily and educationOn the jobInvestments and retirementCharitable givingYour state taxes<< All guide contentLow 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 deductionsBusinessMovingMedicalCharitable2009 per-mile rates55 cents24 cents24 cents14 cents2010 per-mile rates50 cents16.5 cents16.5 cents14 cents advertisementRelated Links:401(k) withdrawal rules can be tricky10 tasty tax tips for 2011Tax Form 2106-EZ, business expensesRelated Articles:Turn refund into a bond?Who has to file taxes?When you can use your IRA
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.