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One of fast tax tip to review before filing your 2024 federal income tax return is the IRS mileage rate.
It’s a much-talked-about deduction, but it’s also a tax break that stalls out for plenty of drivers.
Several years ago, many people could claim an itemized deduction for unreimbursed employee travel expenses. Now, though, if you work for a company who doesn’t reimburse your mileage for travel, you’re out of luck. The change in the tax rule is part of the Tax Cuts and Jobs Act of 2017.
However, a self-employed taxpayer who files a Schedule C can use the standard rate to deduct expenses from mileage incurred while doing business. You can only use one method — the standard mileage rate or the business portion of actual expenses — for the same vehicle.
The 2024 standard mileage rate for business use of a vehicle is 67 cents a mile.
The mileage rate is useful to know at tax time for those traveling for volunteer work and others.
The 2024 mileage rate for use of your vehicle to do volunteer work for certain charitable organizations is 14 cents a mile. To claim that deduction, you must itemize your deductions, and not take the standard deduction, as the majority of taxpayers now do. This would be for unreimbursed expenses.
