A Reminder: The IRS Mileage Rates Have Changed

The 2018 mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes have increased slightly from last year, or remained unchanged. Specifically, as of Jan. 1, 2018, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) are:

  • – 54.5 cents per mile for business miles driven, up one cent from 2017;

  • – 18 cents per mile driven for medical or moving purposes, up one cent from 2017; and

  • – 14 cents per mile driven in service of charitable organizations

The IRS standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs. The charitable rate is based on a statute.

Note that taxpayers can calculate the actual costs of using their vehicle rather than using the standard mileage rates.

The rates are important because most employers use the standard rate for business as the reimbursement rate for employees who drive their vehicles in connection with performing work. However, employers should note that, just like deductions for taxpayers, employees can opt to calculate their actual mileage expenses instead of using the IRS rate.

Upcoming Seminar: Workplace Investigations

Tuesday, May 22, 2018 
Location: Ervin Cohen & Jessup LLP
Registration time: 9:00 AM
Seminar time: 9:30 AM – 11:00 AM
Presented by: Kelly O. Scott
Parking Validation & Continental Breakfast Provided

REGISTER HERE

 

This blog is presented under protest by the law firm of Ervin Cohen & Jessup LLP.  It is essentially the random thoughts and opinions of someone who lives in the trenches of the war that often is employment law–he/she may well be a little shell-shocked.  So if you are thinking “woohoo, I just landed some free legal advice that will fix all my problems!”, think again.  This is commentary, people, a sketchy overview of some current legal issue with a dose of humor, but commentary nonetheless; as if Dennis Miller were a lawyer…and still mildly amusing.  No legal advice here; you would have to pay real US currency for that (unless you are my mom, and even then there are limits).  But feel free to contact us with your questions and comments—who knows, we might even answer you.  And if you want to spread this stuff around, feel free to do so, but please keep it in its present form (‘cause you can’t mess with this kind of poetry).  Big news: Copyright 2018.  All rights reserved; yep, all of them.

If you have any questions about this article, contact the writer directly, assuming he or she was brave enough to attach their name to it.  If you have any questions regarding this blog or your life in general, contact Kelly O. Scott, Esq., commander in chief of this blog and Head Honcho (official legal title) of ECJ’s Employment Law Department.