Mileage Tax Rate
Once you understand how the mileage tax rate and the vehicle deductions work, you'll want to take advantage of one of them if they apply to you.
In this world of rapidly increasing costs of living expenses, it can pay to look for ways to get money back in more places than you’ve already thought of. If your work involves wracking up miles on the road, then there's no reason that you shouldn’t be opting for a mileage tax deduction. There are some people who don't think that such a thing could be worth the hassle and paperwork, but that’s a foolish idea.
For 2010, the mileage tax rate was set at fifty cents per mile. Let me put it this way, if you have expenses related to business, medicine, travel, job hunting, college, home related expenses, or other such activities, then you should automatically be inclined to itemize your tax deductions. It will pay off.
As opposed to taking the mileage tax rate, you can choose to deduct the actual vehicle expenses.
The mileage tax rates are as follows:
- 50 Cents Per Mile For Business
- 14 Cents Per Mile For Charitable
- 16.5 Cents Per Mile For Medical
- 16.5 Cents Per Mile For Moving
The actual expenses can be one of the following:
- Oil Changes
- Repairs & Maintenance
- Insurance & Registration
The more miles you drive per year, the more likely it is that the mileage tax rate will offer you more financial bang for your buck.
If you’ve never used TurboTax Online before, this might be the time to give them a try. Their tax return software is basically automated; it will ask you a series of questions about the information that it will need in order to make the calculations for you. It will show you instant on-screen results which will allow you to make the best decision in the least amount of time (with the most assurance and peace of mind available). They offer a “biggest refund” guarantee which literally means that they swear you’ll get the most money back on your taxes if you use their services.
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