Income Tax Mileage Deduction 2011, 2012

Don't Miss Out On The Income Tax Mileage Deduction

When tax season comes around it’s always prudent to deduct as much as you legally can. One of the most useful tax deductions is the income tax mileage deduction. You can only deduct specific categories of mileage so you have to keep track of your deductible miles and their purpose.

Business Vehicle Driving Purposes For Mileage Deduction

Driving to work, driving somewhere for the company, even searching for a job (in the same field as your last job) can count as a business tax deductible expense. The IRS rate of business tax mileage deductions is 50 cents per mile, so if you drove 1000 miles for your job, you would get a tax deduction of $500.00.

Medical or Moving Driving Purposes For Mileage Deduction

If you drove yourself, your spouse or any of your dependents to get medical help, you can write that off at an IRS mileage rate of 16.5 cents per mile. You can deduct the same rate for moving to a new job at least 50 miles away, as long as you work 39 full time weeks in the following year, and at least 78 full time weeks in the first two years in the new location.

Charitable Driving For Vehicle Tax Deduction

While you can’t deduct any amount donated unless specified otherwise, you can deduct the miles you drove to get to the place of donation at an IRS mileage rate of 14 cents per mile. You can also deduct at that rate if you drive for a charitable business. If you drove 40 miles to help construct a school, you could deduct $5.60.

If you want more information about the income tax mileage deduction, you can click on the support tab and type in IRS mileage deduction rate into the search box for current rates and qualifications, visit TurboTax Online.

Besides all the free information, filing a tax return with TurboTax Online is incredibly simple and easy.

 

Comments

[Ed Pomelear]

According to the IRS at http://www.irs.gov/taxpros/article/0,,id=156624,00.html this information is outdated.