Update: Want to compare with the 2016 mileages rates? Looking for the 2015 mileage rates? Want to compare with the 2014 mileages rates?
The IRS just released its standard mileage rates for 2013, which show slight increases from the current 2012 rates. These rates are made available so that employees, self-employed individuals, and other taxpayers can calculate their tax-deductible transportation costs for business, charitable, medical or moving purposes.
The 2013 standard mileage rates are set at 56.5 cents per mile for business transportation or travel, 24 cents per mile for medical care, and 14 cents per mile for charity purposes. The 2012 rates are 55.5 cents per mile for business transportation or travel, 23 cents per mile for medical care, and the rate for charity purposes stayed the same at 14 cents per mile.
The new rates will take effect on January 1, 2013.
These rates don’t necessarily reflect what a company has to pay their employees for these types of errands. However, employees and self-employed workers can use these numbers to calculate their approximate transportation costs and deduct them for tax purposes.
As always, taxpayers can choose to calculate the actual costs of using their vehicle for these purposes and deduct that amount rather than using the IRS’s standard mileage rates.
For businesses that reimburse their employees for transportation costs, rates can be lower than the IRS’s standard mileage rates, and then employees can simply deduct the difference.
The only way companies can pay their employees more than the standard rates is if the actual costs add up to more than those rates and the employee provides records of those costs. Additional items such as tolls and parking can be taken into account when calculating the actual cost of transportation.
The standard rates usually stay the same throughout the year, but in 2011 the IRS updated the business travel rates mid-year to reflect the increase in gas prices. The standard mileage rates are based on an annual study of both fixed and variable automobile transportation costs.
Every little bit helps, especially for those who are driving a lot.
Anita Campbell
Robert, I agree: every little bit helps.
Now here’s a tip: plug this rate now into your accounting software, or calendar a note to yourself to remember to change it on January 1st!
Anita
Ti Roberts
Thanks for the tip, Anita. I would be interested in seeing what the results are.
Louise Cotita
Can you use mileage rates to and from the pharmacy? If not, why not?
marsha woolard
I work for Missouri vein care located in Poplar Bluff Missouri.In January I had to travel to the main office in Jefferson City Missouri for 3 weeks for training. I was only paid 24 cents per mile because they said it was medical care rate.
what was my rate of mileage for driving my truck to a 3 week training to learn. I did not transport any medical supplies just myself.
I think I should of got paid 56.5
Please reply soon 🙂
thank you
Marsha Woolard
K Heise
For the past two years my employer has paid and compensated me for mileage taken traveling from our home office to a secondary office location. He is now stating that as “he has not taken any money out of the business” he is not willing to pay me for mileage taken in 2013. I feel that as he made a verbal commitment to me when I took the Office Manger’s position and was paid for the past two years, he should pay me for the 2013 mileage. I do not beleive there is a Missouri state law requiring an employer to pay an employee for mileage. Does anyone know? If I choose to leave my employment, can I take my employer to small claims court regarding this matter?
Thank you for your assistance!
Nick Antolino
I used my truck for about 3,383 miles this year for business, now my employer paid for all my gas and expenses; food, hotel, ect. My question if someone can help me is it wrong to go after them for the amount per mile which if i calculated it right should be around $1,894.
Any replies are appreciated.