Mileage Reimbursement ?

I am wondering if the mileage reimbursement used by companies is mandated by the IRS or is it just good practice to use what the IRS recommends?

No, not mandated. BUT, you can deduct the difference when you do your taxes. Example – IRS allowable deuction is 51.5 cents per mile. Company X pays .355 cent per mile. You can claim you total mileage X .16 for the difference. Over the years I have worked for a few companies that paid a set rate that was lower than the IRS allowable deduction. Just don’t get caught double dipp’n

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No, not mandated. BUT, you can deduct the difference when you do your taxes. Example – IRS allowable deuction is 51.5 cents per mile. Company X pays .355 cent per mile. You can claim you total mileage X .16 for the difference. Over the years I have worked for a few companies that paid a set rate that was lower than the IRS allowable deduction. Just don’t get caught double dipp’n

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X2

Thanks guys. I’ll run this by my accounting person also, but I assume I just need a log of any miles. Dates, Locations, miles traveled etc? Anything else you track?

Kooty – do you keep mileage tracking tied to your expense reports? I know for my job I get paid XX per mile which is well below the .51 govt rate – I keep my monthly mileage tracking together on a spreadsheet so it’s right there at the end of the year

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No, not mandated. BUT, you can deduct the difference when you do your taxes. Example – IRS allowable deuction is 51.5 cents per mile. Company X pays .355 cent per mile. You can claim you total mileage X .16 for the difference. Over the years I have worked for a few companies that paid a set rate that was lower than the IRS allowable deduction. Just don’t get caught double dipp’n

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X3 federal reimbursment rate for 2013 is 56.5 cents/mile.

I track mine in an IRS approved book from Office max. I put the date and locations and odometer readings down.

I use Runtimzer device for work that I pulg in my lighter outlet and then upload to my computer to there web site and it has all the info with may and times of my trips for work. then I get a check every month.

Standard Mileage Rate (SMR) for 2012 was $.555. For 2013 it is $.565. 2014 has not yet been released. You can be reimbursed at or below the SMR tax free by employer. If reimbursed at less, you may be able to deduct the difference. Businesses may use SMR or actual expenses. There are limitations & exceptions, however. Consult your tax advisor.