Taxes
What is the IRS standard mileage rate for 2018?
This article is about the 2018 mileage rates. Click the link to read about the 2019 mileage rates. The IRS mileage rate for 2018 is 54.5 cents for every business mile, up 1 cent from last year. The standard mileage rate is an important figure for determining how large your mileage deduction will be.
What are the standard mileage rates for 2018?
The standard mileage rates for 2018 are:
- 54.5 cents for every business mile, up 1 cent from 2017
- 18 cents per mile for medical or moving, up 1 cent from 2017
- 14 cents per mile for charity drives, which has been steady for a while.
How do I use the business mileage rate on my taxes?
Use the mileage rate to determine how much you can write off with the mileage deduction. Simply multiply the number of business miles by the 54.5 cents to come up with your deduction amount. For example, if you drive 15,000 business miles in 2018, your mileage deduction would be $8,175. Keep in mind, this gets added to all your other tax deductions. In other words, the mileage deduction can go a long way toward lowering your taxable income and your taxes.
How do I track mileage?
If you plan to take a mileage deduction, you must keep a record of:
- Your mileage
- Dates of your drives
- The places you drove for business (this doesn't have to be an exact address)
- The business purposes of your trips.
The IRS will also want to know your beginning odometer reading, your commuting mileage, and your personal non-commuting mileage.
What does this mean for MileIQ users?
If you're using MileIQ to automatically track and log your miles, you're all set. MileIQ will automatically calculate the value of your miles based on the new rates in 2018. That's right, you just do your job as you normally would and MileIQ will automatically create a mileage log for you. If you're still manually tracking your miles, you may want to give MileIQ a try‚ that way, you'll have accurate mileage logs for your largest deduction yet.
