2018 Mileage Rate Reimbursements & Deductions

If you are going to use your car for business, charity, and medical appointments during 2018, please be aware that the standard mileage rates for computing the deductible costs have changed.

Hello, this is Noel Dalmacio, your ultimate CPA at lowermytaxnow.

Effective January 1, 2018, here are the rates to use to calculate reimbursements and deductions for the year:

•  The rate is 54.5¢ per mile for business miles driven (up from 53.5   cents in 2017)
•  For charitable services, it remains at 14¢
•  The rate for medical mileage is 18¢ per mile (up from 17 cents in 2017)

Keep in mind that the mileage expenses for moving expenses and job-related mileage deductions for employees were eliminated effective January 1, 2018. For tax planning purposes, talk to your employer and see if you can get a reimbursement for both of these expenses. If not possible, ask for a raise to at least cover all or at least part of your expenses.

That is all for now.

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Until then, this is Noel Dalmacio, your ultimate CPA at lowermytaxnow.com.