There are many deductions one may be able to take when it comes to filing taxes. One of which is the standard deduction for mileage due to the cost of operating a vehicle for a business, moving expenses, medical, or charitable activity.
· Business - You may receive 55.5 cents per mile driven. This expense is directly related to driving the business vehicle for a business purpose. The 2013 mileage rates will increase to 56.5 cents per mile.
· Moving expenses - You may receive 23 cents per mile driven. This expense is related directly to the transportation cost only. You are eligible for this deduction as long as you have met three qualifications: the reason of your move is for either a new job or to start a new business; your relocated place is at least 50 miles away from your prior home; and you must have worked at least 39 weeks full time during the first 12 months directly after the move. The 2013 rates will increase to 24 cents per mile.
· Medical - You may receive 23 cents per mile driven. This is related to direct transportation expenses such as the mileage for a trip to a health facility or doctor's office, parking fees, and tolls. The 2013 rates will increase to 24 cents per mile.
· Charitable activities - You may receive 14 cents per mile driven. This is related to direct transportation expenses related to a non-profit organization, including tolls and parking.
The charitable activities rate will stay the same unless Congress allows an increase for special causes, such as national disasters. That will only be temporary though. For each of these mileage deductions, you must be careful to document the mileage correctly along with the purpose of the trip. You also should keep any receipts for auditing purposes.
Comments