The IRS Mileage Rate Tax Deduction is available for taxpayers who use their vehicles for business, charitable activities, and medical purposes. In a recent post, the American Tax Service takes a look at the types of mileage that are tax deductible, the current standard mileage rates and how to claim the tax deduction.
Taxpayers looking forward to claiming a tax deduction for mileage can either use the standard mileage rate or their actual expenses. Using actual expenses will consider things like oil and tire changes, as well as vehicle depreciation. It is more suited for taxpayers whose primary business expense is their car as it is in the case of Uber drivers. It, however, requires more paperwork but it is generally the best option for taxpayers who drive their car for business a lot. For people who seldom use their personal vehicle for business reasons, it’s better to stick to the standard mileage rate.
The standard mileage rate is regularly updated to keep up with inflation and the rates are slightly increased for the 2018 tax season. The rates are now set at 54.5 cents for every business mile driven, 18 cents per miles for every medical mile driven and 13 cents per mile driven for charity work.
H&R Block online tax filing can help determine whether taxpayers can claim the Mileage Rate Tax Deduction via the standard mileage deduction or through actual expenses. All they need is have a complete record of their mileage for business purposes and the H&R Block will use this information to calculate how much of a deduction and what credits they can get. Taxpayers who file using the H&R Block online are guaranteed the accuracy of their return.
For more information about the IRS Mileage Rate Tax Deduction, please visit, https://americantaxservice.org/irs-mileage-rate-tax-deduction/