If you use a vehicle for work in some way, regardless of whether you run your own business or not, make deliveries for a company, or work for a charity, it’s important to know the latest IRS mileage rate and how it effects what you can deduct from your taxes in the following year. Knowing how to report your miles properly to the IRS can ensure that you get the best deductions and avoid paying taxes that you don’t need to pay.

Many people struggle when making determinations about the IRS mileage, and because the amount that can be deducted for each type of business mile per year changes, it’s worth making sure that you’re fully aware of the latest changes posted by the IRS before you begin filling out tax return forms. After all, the last thing you want is to have to pay fees as a result of your tax filing problems.

Crucially, you should not use the following information for the 2017 IRS mileage rate for any year other than miles generated over 2017.

Different Rates for Different Companies:

One very important aspect to be aware of when calculating the IRS mileage rate is that different companies and organizations are subject to different rates. The amounts that are awarded to each organization has decreased since 2016 for everyone except charities, wherein the amounts remain the same. The rates that are available will apply regardless of whether you drive a car, a van, a pick-up truck, or a panel truck. These rates are:

– 53.5 cents for every mile you drive for business purposes

– 17 cents for every mile you drive for moving products or medical equipment

– 14 cents for every mile you drive for charity

What IRS Form To Use: Form 2106-EZ

When deducting expenses from your business or job, use the Unreimbursed Employee Business Expenses form which is Form 2106-EZ.

Understanding the IRS Mileage Rate:

It can be complicated to figure out why different amounts are given to different people. The best way to understand this process is to note that the mileage rate offered for businesses and charities is calculated based on the deductible expenses that the IRS uses to determine how much is spent for using a vehicle for business. Of course, if you feel as though the numbers given aren’t correct, or you’re worried about how much you are receiving in deductibles for your vehicle expenses, then you can always choose to calculate exactly how much you spend on your vehicle each year. However, in this case you will be required to provide evidence of your expenditure.

Take note that you cannot use the standard mileage rate in place for 2017 to calculate deductions for your vehicle miles if you have already decided to claim a deduction from section 179 of the IRS forms for your vehicle. If you are unsure whether or not you are eligible to use the standard mileage rate when calculating your business miles, it could help to speak to a professional accountant about the amounts that you are available to deduct, or speak to the IRS.

In some cases, calculating your own mileage can be helpful, but most people find that it is far too time-consuming and complex.