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Archive for Mileage

Charitable Miles Deduction: Is It Changing Under The New Tax Reform?

Now that the effects of last year’s tax reform bill are being felt, the proposals to reform the reform keep rolling in. Last month, Sen. Bob Casey (D-PA) put forth a bill to reinstate unreimbursed job expenses. This week, Rep. Richard Nolan (D-MN) introduced H. R. 5662, also known as the Volunteer Driver Tax Appreciation Act of 2018.

The purpose of the bill is to amend the Internal Revenue Code of 1986 to equalize the charitable mileage rate with the business travel rate. For 2018, the Internal Revenue Service (IRS) optional standard mileage rates for the use of a car, van, pickup or panel truck are 54.5 cents per mile for business miles driven but a mere 14 cents per mile driven in service of charitable organizations. Read more

Can I Deduct Mileage For A Job Search?

If your interview was during 2017 (or earlier) and for a job in the same line of work, your mileage expenses and other expenses are deductible. You can use the standard mileage rate (53.5 cents per mile for 2017) to figure your expenses.

Thus, if you drove 1,300 miles, your driving expense is $6,995. But you may take this deduction only if you itemize your personal deductions on your tax return. Read more

The Actual Expense Method Under The New Tax Law

When you use your car for business there are two ways to calculate your deduction: using the standard mileage rate or the actual expense method. The standard mileage rate method has remained the same and your miles are worth more in 2018. But, let’s go over how the actual expense method has changed.

Standard Mileage Rate Vs. Actual Expense Method

Most people use the standard mileage rate because it’s easier and simpler. All you do is keep track of your business mileage and deduct a set amount for each business mile. Read more

What Is An Accountable Plan For Reimbursements And Business Taxes?

Reimbursements for expenses like mileage can be taxable for employees depending on if your business has an accountable plan. Let’s go over what an accountable plan is and the impact it can have on your business taxes.

What Does An Accountable Plan Mean?

An accountable plan is a system for handling your reimbursements or allowances for employees. It must satisfy the following requirements:

  • There’s a business connection
  • Employees provide some form of substantiation
  • Employees return excess amounts

Read more

Mileage Reimbursement Mistakes Businesses Make

You know that a proper mileage reimbursement program can save your business time, money and boost compliance. Yet, we’ve seen many companies make mistakes with their programs. Here are some of the major mistakes your business should avoid.

Not Having A Clear Process

Nearly half of businesses with mobile employees don’t have a clear process or policy for mileage reimbursement. Some companies require a mileage log, while some really want one but still pay out reimbursements anyways because they don’t want to upset workers. Read more