Mileage Reimbursement Calculator
Calculate mileage reimbursement and tax deductions using current IRS standard mileage rates. Perfect for business, medical, and charitable driving expenses.
Reimbursement Summary
Tax Savings
Additional Costs
Understanding Mileage Reimbursement
The IRS allows taxpayers to deduct vehicle expenses for business, medical, charitable, and moving purposes. You can choose between the standard mileage rate or actual expenses method, whichever gives you the greater deduction.
Current IRS Mileage Rates (2024)
| Purpose | Rate per Mile | Notes |
|---|---|---|
| Business | $0.67 | Self-employed business use |
| Medical | $0.21 | Medical transportation |
| Charitable | $0.14 | Volunteer work |
| Moving | $0.21 | Job-related moving |
Standard Mileage vs. Actual Expenses
Standard Mileage Rate
- Simple calculation: miles × rate
- No need to track actual expenses
- Includes gas, maintenance, insurance
- Fixed rate set by IRS annually
- Easier record keeping
Actual Expenses Method
- Track actual vehicle costs
- Gas, oil, repairs, insurance
- Depreciation and interest
- Can exceed standard rate
- Requires detailed records
Mileage Deduction Rules
Business Use
Self-employed individuals
Schedule C filers
Business-related driving
Medical Use
Doctor visits
Hospital transportation
Medical treatments
Charitable Use
Volunteer work
Non-profit organizations
Donated services
Record Keeping Requirements
Required Documentation
- Date of trip
- Miles driven
- Business purpose
- Starting point and destination
- Relationship to business/medical need
Recommended Records
- Vehicle mileage log
- Gas receipts
- Maintenance records
- Toll receipts
- Parking fees
Tax Implications
Mileage deductions reduce your taxable income, which can lower your tax liability. The actual tax savings depends on your marginal tax bracket and whether you're self-employed or an employee.
Tax Savings Calculation
Tax Savings = Deduction Amount × Marginal Tax Rate
Self-Employed
Deduction reduces self-employment income
Also reduces self-employment tax
Employees
Unreimbursed expenses on Schedule A
Subject to 2% AGI limitation
Common Mileage Mistakes
Avoid These Errors
- Not keeping adequate records
- Mixing personal and business miles
- Forgetting to include tolls/parking
- Using incorrect mileage rate
- Not documenting business purpose
Best Practices
- Maintain detailed mileage logs
- Use apps for automatic tracking
- Separate business and personal use
- Keep receipts for all expenses
- Calculate both methods annually
Employer Reimbursement
Accountable Plan
- Employer reimburses actual expenses
- No tax withholding
- Not reported as income
- Requires business purpose documentation
Non-Accountable Plan
- Reimbursement treated as income
- Subject to income tax withholding
- Employee claims itemized deductions
- Less favorable for both parties
Key Takeaways
- IRS sets standard mileage rates annually for different purposes
- Choose between standard mileage rate or actual expenses method
- Maintain detailed records of business purpose and miles driven
- Tax savings depend on your marginal tax bracket
- Self-employed individuals get better tax benefits than employees
- Employer reimbursement under accountable plan is tax-free
- Medical and charitable mileage use lower rates than business
- Always compare standard rate vs. actual expenses annually
- Keep records for at least 3 years in case of IRS audit
- Use mileage tracking apps for accurate record keeping