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Keep track of your deductible mileage on your vehicle and you
could see big savings on your tax return. Remember that you
MUST keep accurate records in order for the deductions to be
allowed. Listed below are the most common mileage deductions
and how you can take advantage of them. A standard mileage rate
applies to each type of deduction. Parking fees and tolls for
any of these purposes can be claimed in addition to the mileage.
Medical Expenses
You can claim a medical deduction of 24
cents per mile driven primarily for, and essential to, medical
and dental care. This includes trips to the pharmacy to pick up
prescriptions as well as visits to doctors, dentists,
therapists, and so on.
Charitable Purposes
You can claim a charitable
contribution deduction of 14 cents per mile for each mile driven
for performing services for a charitable organization.
Job Search Purposes
Mileage expenses incurred while
seeking new employment in the same occupation are deductible.
The standard mileage rate is 56.5 cents per mile driven.
Business Miles
Mileage expenses incurred for business
purposes if self-employed or at the request of your employer are
deductible. If you work at two places in one day, you can
deduct the expense of getting from one workplace to the other.
The standard mileage rate is 56.5 cents per mile.
Educational Expense (For Job Related Education)
If your
education qualifies, you can deduct local transportation costs
of going directly from work to school. If you are regularly
employed and go to school on a temporary basis, you can also
deduct the costs of returning from school to home. The
qualifying job-related education rate is 56.5 cents per mile.
Moving Expense
If certain conditions are met, you can
deduct 24 cents for each mile driven for your move.
Record Keeping Requirements
It is important to keep
accurate mileage records for claiming a mileage deduction. The
records to keep are:
- total miles for the year
- mileage for each deductible use
- times and dates
- place/address
- business purpose
- charitable purpose
- educational purpose
- medical purpose
- moving purpose
Ultimate Tax & Accounting Group, Inc. professionals are
available for your tax needs. Please call your local Ultimate
Tax
& Accounting Group, Inc. office for further information.
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