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Tax mileage is the amount of money that can be deducted per mile for vehicles used for medical and moving purposes and by businesses and charitable organizations. The deductions are made on the taxes for that year.
Business Mileage
The business tax mileage deduction rate is 55 cents per mile traveled.
Medical and Moving Mileage
For vehicle travel done for moving and medical purposes, the tax mileage rate is 24 cents per mile.
Charitable Organization Mileage
Travel for charitable organizational work can be deducted at 14 cents for each mile traveled in the vehicle while performing the work of a charitable organization.
Calculating Tax Mileage
Calculate tax mileage by keeping a log of the miles you drive for purposes that offer a tax deduction. This can be done by checking the odometer at the beginning and end of each trip.
Benefits
By calculating the amount of miles you travel each year for business, medical, moving, or charitable organization purposes you can save money on your travel and vehicle maintenance. The amount you save is dependent on how much you travel for those purposes.
Source:
Internal Revenue Service: IRS Announces 2009 Standard Mileage Rates
Businesstaxrecovery.com: IRS Mileage Allowance
Contractormag.com: IRS Boosts Auto Mileage Allowance
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