The Mileage Tax Deduction is a credit made for the 21st century. The amount of road travel we engage in for the most common aspects of our life is either wonderful or absurd depending on how you view things.
You get the choice of claiming the actual vehicle expenses deduction or taking the mileage rate. Obviously you want the one that affords you the biggest advantage.
The actual expense deduction includes:
Then the mileage rates are broken up into a rate for the first half of the year and another rate for the second half.
Then there are three categories:
- From January 1st to June 30th the business rate is 51 cents per mile
For this period the medical rate is 19 cents per mile
The charitable rate is 14 cents per mile
- From July 1st to December 31st the business rate is 55.5 cents per mile
For this period the medical rate is 23.5 cents per mile
The charitable rate remains 14 cents per mile
Naturally this deduction can only be claimed on an itemized tax return all you will need to furnish physical proof of the miles and their purposes to the appeasement of the IRS.