Mileage Deductions

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 54.5 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 18 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 58 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 58 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 58 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

Yang & Associates, Ltd. professionals are available for your tax needs.  Please call your local office for further information.