John M. Hoffman & Associates CPAs

Frequently Asked Questions

Important Tax Numbers ($'s)

• Standard Mileage Rates

Tax Year	2010	2011
Business	50¢	51¢
Charitable	14¢	14¢
Moving	16.5¢	19¢
Medical	16.5¢	19¢

 

UPDATE - The IRS has increased the mileage rates for the second half of 2011 to 55.5 ¢ for business, 23.5 ¢ for medical / moving while keeping charitable miles at 14 ¢.

The standard mileage rate is an alternative to claiming actual expenses. It is much easier as less effort in tracking expenses is involved. For some taxpayers the effort of tracking all the expenses (gas, repairs, insurance, etc.) is worth the effort. The standard mileage rate is intended to include all these expenses including depreciation of your vehicle. You must still keep a record of your mileage, a log book by date and time is the best way.

The standard mileage rate does not include tolls or parking and those should be claimed separately.