1. What is the IRS Mileage Deduction?

The IRS mileage deduction allows taxpayers to deduct business-related vehicle expenses based on the standard mileage rate set by the Internal Revenue Service. The current rate is $0.67 per mile for business use.

2. How Does the Calculator Work?

The calculator uses the IRS standard mileage formula:

Where:

• \( Miles \) — Total business miles driven
• \( 0.67 \) — Current IRS standard mileage rate (in dollars)

Explanation: This simple calculation multiplies your business miles by the current IRS standard rate to determine your deductible amount.

3. Importance of Mileage Tracking

Details: Accurate mileage tracking is essential for maximizing tax deductions, maintaining IRS compliance, and proper business expense documentation.

4. Using the Calculator

Tips: Enter the total business miles driven during the tax year. Keep detailed records including dates, destinations, and business purposes for each trip.

5. Frequently Asked Questions (FAQ)

Q1: What qualifies as business mileage?
A: Travel between workplaces, client meetings, business errands, and other trips primarily for business purposes.

Q2: Can I use this rate for all vehicle types?
A: The standard rate applies to cars, vans, pickups, and panel trucks. Different rules may apply for motorcycles and other vehicles.

Q3: How often does the IRS mileage rate change?
A: The IRS typically announces new rates annually, usually in December for the following tax year.

Q4: Should I keep mileage logs?
A: Yes, the IRS requires contemporaneous records including dates, miles, destinations, and business purposes.

Q5: Can I deduct commuting miles?
A: No, regular commuting from home to your regular workplace is not deductible under current IRS rules.