Mileage reimbursement in USA

Your mileage allowance happens as a tax-deduction in the US. That means that you have to inform the IRS of how much mileage allowance you have earned during the year. And for that you need a mileage logbook to keep track of all your driven miles, and to give proper documentation towards the IRS.

Who can use it?

  • Employees
  • Self-employed people

Needed documentation

According to the Internal Revenue Service, you cannot deduct amounts that you approximate or estimate. As a minimum you need documentation on the following:

  • Date when the business miles was driven
  • Destination of the trip
  • Business miles for each trip
  • Purpose of the business trip

And you do not have to have it on paper. A digital storage is enough, and this is precisely what our software delivers.

"If you prepare a record in a computer memory device with the aid of a logging program, it is considered an adequate record"

Internal Revenue Service - Publication 463

Approved business mileage rates

From Jan. 1, 2012 the standard milerates are:

  • 55.5 cents per mile for business miles driven
  • 23.0 cents per mile driven for medical or moving purposes
  • 14.0 cents per mile driven in service of charitable organizations

In the period Jan. 1, 2009 - Dec. 31 2011 the standard milerates are:

  • 55.0 cents per mile for business miles driven
  • 24.0 cents per mile driven for medical or moving purposes
  • 14.0 cents per mile driven in service of charitable organizations

Excemptions where standard mileage rates cannot be used

You cannot use the standard mileage rate if you;

  • Use the car for hire (such as a taxi)
  • Use five or more cars at the same time (as in fleet operations)
  • Claimed a depreciation deduction for the car using any method other than straight line, for instance MACRS
  • Claimed a section 179 deduction on the car
  • Claimed the special depreciation allowance on the car
  • Claimed actual car expenses after 1997 for a car you leased
  • Are a rural mail carrier who received a qualified reimbursement