Mileage is a potential tax deduction often overlooked. If you have unreimbursed business mileage, mileage related to medical or moving purposes, or for charitable work, you may be eligible for this deduction.
- Unreimbursed Business Mileage: If you have work-related mileage that has not been reimbursed, or if you are self-employed, you can likely deduct this expense. For 2014, the standard mileage rate for business miles driven is 56 cents per mile.
- Medical/Moving Mileage: For the past year, the standard mileage rate associated with medical or moving purposes is 23.5 cents per mile driven.
- Charitable Mileage: For 2014, the standard mileage rate per mile driven in service of charitable organizations is 14 cents.
You have determined you are eligible for this deduction. Now what?
The IRS requires documentation of mileage traveled. Ideally, this means documenting every trip. For business expenses, if you schedule appointments on a calendar, you can document your mileage with the help of a site like Google Maps. There are also apps, like TripLog, that can simplify the process. Or, there’s always paper tracking! If you go this route, just keep a notepad in your car and log each trip.
The same is true for medical/moving and charitable mileage. Compile a list of dates, miles traveled and the reason for each trip.
EX: April 15, 2014; Harvesters (volunteered – food sorting); home to 3801 Topping Avenue, KCMO; 38 miles RT
Starting a record for mileage at the beginning of each calendar year makes managing this deduction easier when tax time comes. However, if you keep good date records you can go back and still provide an accurate record. Need help? Contact us for guidance at (913) 888-9100.
Richard Adams is a graduate of Benedictine College in Atchison, Kansas, with dual majors in Accounting and Business Administration. He is also a graduate of Wentworth Military Academy in Lexington, Missouri.