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The Curious Bag
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You can claim gas mileage expenses as a tax deduction in the United States when operating a vehicle for business, charitable, medical or moving purposes. Your cost for gas mileage is calculated based on the federal mileage rate. Beginning on Jan. 1, 2009, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) are as follows:
Standard Mileage Rate
The deductible amount allowed for business travel is 55 cents per mile; for medical or moving purposes, the rate is 24 cents per mile driven; for charitable organizations, 14 cents per mile.
Keep Record Of Miles
Keep a notebook as a log in the vehicle to calculate the total miles traveled related to business, charitable, medical or moving purposes. Include the following columns: date, miles driven, reason for the trip.
Maximize Benefits
According to Dean Forest, a tax expert, you can increase tax deductions and save more money by exploring alternative-fuel-run vehicles, such as hybrid or electric vehicles.
Alternate Option
As an alternative to the federal gas mileage rates, travelers have the option of having the amount of mileage deducted based on the actual cost of gasoline.
Finding More Help
The IRS or your accountant can inform you of any changes in rates or policies involved in calculating the deduction for gas mileage on your taxes.
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