The IRS recently announced that the business standard mileage rate will increase to 57.5 cents in 2015.
Beginning January 1, the standard mileage rates for the use of a car, van, pickup or panel truck will be:
- 57.5 cents per mile for business miles driven, up from 56 cents in 2014
- 23 cents per mile driven for medical or moving purposes, down 1/2 cent from 2014
- 14 cents per mile driven in service of charitable organizations
When This Rate May be Used
The mileage rate may be used to compute the amount to reimburse employees using their own cars for business purposes. It may also be used by employers electing to use the “cents-per-mile” valuation method for purposes of determining the amount added to an employee’s income for personal use of certain company-owned or leased non-luxury vehicles.
Taxpayers have the option of claiming deductions based on the actual costs of using a vehicle instead of the standard mileage rates.
Have questions regarding employee pay and reimbursements? Call managestaff. We’ll help.