Friday, 2 November 2012

What is the 2012 IRS Rate for Mileage?


·         55.5 cents for every business mile
·         23 cents for every medical or moving mile
·         14 cents for every charitable service mile

Above are the 2012 IRS mileage rates for the three categories of miles driven. Depending on what type of trip your IRS mileage varies.

So it’s vital that when you log your mileage you specify the type of driving in order to be as accurate as possible during the filing process.
In terms of accessing moving mileage, most online software will ask for the zip codes for each location (from A to B) and then calculate the mileage for you.
TurboTax Online or C/D Download can help you prepare your return and make sure you note your mileage in the proper places. When considering this, you have the option of taking the actual cost of your vehicle or the IRS standard mileage rate:
The IRS Standard Mileages Rates for 2012;
January 1st to June 30th

·         51 cents for every business mile
·         19 cents for every medical or moving mile
·         14 cents for every charitable service mile

July 1st to December 31st

·         5.5 cents for every business mile
·         23.5 cents for every medical or moving mile
·         14 cents for every charitable service mile

In some cases you can also deduct the cost of parking and tolls while using the vehicle for any of the standard deduction purposes. So if you acquired tolls or parking fees while on business, medical, moving, or charity related trips then you can deduct those fees.

Rules & Exceptions:

·         Standard rate cannot be used for more than four vehicles at the same time or for hired vehicles.
·         The standard rate must be reduced by depreciation which s 22 cents per mile for 2011.

Remember, it’s always best to consult with a tax preparer or utilize online resources. Some tax credits and deductions only last a few years while others stay around a decade or more while seeing year-to-year tweaks in their rules.


Related post: What is the 2012 IRS Rate for Mileage?

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