The IRS mileage reimbursement rate is an optional rate, recommended by the Internal Revenue Service in the U.S., that is used to calculate the deductible costs of operating an automobile for business, medical, charitable, or moving reasons. The IRS mileage reimbursement rate is adjusted depending on the IRS-determined cost of operating a motor vehicle.
According to the IRS, the IRS mileage reimbursement rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study."
The IRS mileage reimbursement rates for 2009 are:
- 55 cents per mile for business miles driven,
- 24 cents per mile driven for medical purposes,
- 24 cents per mile driven for moving purposes, and
- 14 cents per mile driven as a volunteer for charitable organizations.
This rate is down from the IRS mileage reimbursement rate allowed in the second half of 2008. The 2008 IRS mileage reimbursement rate was adjusted up to reflect rising gas prices which have now gone down.
For the self-employed or for employees who use their own vehicles for business-required travel, the IRS mileage reimbursement rate guides tax deductions for the use of a car or truck. Employers use the IRS mileage reimbursement rate to reimburse employees for business-related use of their vehicle.
Taxpayers may not use the IRS mileage reimbursement rate for tax purposes on their income tax return if they have used a depreciation method, for the same vehicle, to account for vehicle use in the past. Taxpayers have the option to document the actual costs of driving their vehicle or they may use the IRS mileage reimbursement rate for tax purposes.
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