Remember, you can deduct the IRS’ standard mileage rate instead of claiming actual expenses when using your car for business, medical, moving or charitable purposes.The IRS standard mileage rate for business, medical, or moving deduction purposes is going up a penny in 2013.  The new rates are:

  • For business driving: 56.65 cents per mile
  • For medical and moving expenses: 24 cents per mile
  • For driving as a charitable volunteer: 14 cents per mile.  This rate is fixed by statue and is not subject to annual changes by the IRS.

 

Employees who use their
vehicles for work and who are reimbursed under an “accountable” plan in 2013

will not be taxes on reimbursements up to the 56.5 cents per mile business mile standard rate.

JK Lasser’s Monthly Tax Letter, December 2012