IRS Tax Deductible Car Mileage Rates
Simply prepare and e-File your 2019 Tax Return on eFile.com and the eFile app will not only determine whether or not you can deduct your mileage, it will determine, calculate, and report your deductible mileage on your return. If you do like reading, please find the details and explanations about deductible mileage rates and expenses below. Then, let's go and do your 2019 Taxes. We make Taxes
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For 2019 Tax Returns, you can deduct expenses that relate to your work as an employee if any of the following apply to you:
- Qualified performing artist
- Fee-basis state or local government official
- Armed forces reservist
- Impairment-related work expenses
- Your employer entered code "L" for box 12 of your W-2
For a vehicle you own or lease, you can deduct either the actual expenses or the standard rate per mile driven. If the car is leased and you use the standard mileage rates, you must use the standard rates for the entire life of the lease. If you itemize the deductions. you can deduct these amounts from your taxable income. Find out what business miles you can deduct from your income. These mileage rates are optional and you can use the actual vehicle expenses instead of the standard mileage rate as your deduction if you kept detailed records (such as a mileage log).
Optional Standard Deductible Car Rates Per Mile
Below are the optional standard tax deductible IRS mileage rates for the use of your car, van, pickup truck, or panel truck for Tax Years 2008-2019. We will add the 2020 Mileage Rates when the IRS releases them. If you need to prepare and file a previous year tax return, find and download tax forms for previous Tax Years.
51 cents (Jan. 1 - June 30); 55.5 cents (July 1 - Dec. 31)
19 cents (Jan. 1 - June 30); 23.5 cents (July 1 - Dec. 31)
50.5 cents (Jan. 1 - June 30); 58.5 (July 1 - Dec. 31)
19 cents (Jan. 1 - June 30); 27 cents (July 1 - Dec. 31)
Additional Vehicle Use Deductions: In addition to the standard mileage rates, you may deduct the costs of tolls and parking while using your vehicle for one of the approved purposes. These are separate deductions. However, if you have claimed vehicle depreciation, you may not deduct tolls and parking fees.
Standard Mileage Rate Restrictions: The standard mileage rates may not be used for vehicles used as equipment, or for more than four vehicles used simultaneously. You cannot use the standard mileage rates if you claim vehicle depreciation.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile; the standard rate for medical and moving purposes is based on the variable costs as determined by the same study. Runzheimer International, an independent contractor, conducted the study for the IRS. The mileage rate for charitable miles is set by law.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS), after claiming a Section 179 deduction for that vehicle, for any vehicle used for hire or for more than four vehicles used simultaneously.
Remember that mileage rates are not the extent of your deductible expenses for the business use of your car. Remember to include parking and tolls under deductible expenses for the business use of you car.
Deductible Business Miles
Deductible business use of your car does not cover normal commuting to your usual place of work. Qualified deductible business use includes:
- Driving to a business meeting away from your usual workplace
- Meeting clients or customers
- Getting from your home to a temporary workplace
- Getting from your regular workplace to a second workplace, for the same job or business
If you use your car only for your job or business, you may deduct all of the miles driven or actual vehicle expenses. But if you also use the car for other purposes, you can only deduct the portion used for business purposes.
Normal commuting from your home to your regular workplace and back is not deductible. You may deduct business mileage only if you are traveling to and from a temporary work location, from one work location to another, to meet with a client, to a conference, etc.
Medical Transportation Expenses
Expenses for primary transportation to medical care facilities that qualify as medical expenses are:
- Actual fees or fares for a taxi, bus, train, or ambulance
- Out-of-pocket expenses for using your own car, or the standard mileage rate
- Fees for tolls and parking
Actual Car or Vehicle Expenses You Can Deduct
Instead of using the standard mileage rates, you may use the actual costs of operating your car instead. You will need to keep accurate records. Qualified for this purpose include gasoline, oil, tires, repairs, insurance, tolls, parking, garage fees, registration fees, lease payments, and depreciation licenses.
Keep records of your deductible mileage each month with a simple journal or mileage log. For your convenience, we have prepared a downloadable mileage log which you can print and fill out each month. You can use your mileage information to help you complete and eFile your 2019 Tax Return on eFile.com, the eFile app will determine whether or not you can deduct your mileage based on your answers to several simple questions. Then, the app will calculate your mileage rate for you and report it on your return.
Have more questions about deductible mileage rates and expenses? Ask an eFile.com Taxpert your tax questions now!