The IRS has released the 2017 standard mileage rate and it is down again from the 2016 standard mileage rate. Beginning on Jan. 1, 2017, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
2017 Standard Mileage Rate
53.5 cents per mile for business miles driven, down from 54 cents for 2016
17 cents per mile driven for medical or moving purposes, down from 19 cents for 2016
14 cents per mile driven in service of charitable organizations
The IRS 2017 standard mileage rate for work, charity, moving, medical milage.
For work mileage the IRS has calculated 53.5 cents per mile for business miles driven, down from 54 cents for 2016. This is because if the decrease in gas and maintenance costs from 2016. The business mileage rate decreased half a cent per mile and the medical and moving expense rates each dropped 2 cents per mile from 2016. The charitable rate is set by statute and remains unchanged.
What is a Standard Mileage Rate and how is it calculated?
According to the IRS - A set rate the IRS allows for each mile driven by the taxpayer for business, charitable, medical or moving purposes. The standard mileage rate can be taken in lieu of actual expenses incurred when calculating deductible automobile expenses related to any of the four activities above. (investopedia)
To calculate the 2017 mileage rate is pretty simple even though the Everlance will automatically do it for you. Lets take the work mileage rate of 53.5 cents per mile. Say you drove 15,000 miles for work in 2017 and those are all tax deductible miles. The equation is $.535 x 15000 = $8,025 and there is your total deductions based on the 2017 standard deduction rate.
What are the past IRS standard mileage rates?
2017 Work Standard Mileage Rates:
|Year||IRS Rate per Mile|
As you can notice in the chart above the there has been a downward trend in the amount you can deduct per mile for your mileage and this year being the lowest it has been since 2011. Here is more info from the 2016 Standard Mileage Rate.
2017 Medical Standard Mileage Rates:
|Year||IRS Rate per Mile|
Just like the work standard mileage rate the medical rate for 2017 is also as low as it has been since 2011: 17 cents per mile driven for medical or moving purposes, down from 19 cents for 2016. This rate is used for deducting for medical purpose trips.
2017 Charity Mileage Rate:
This mileage rate has stayed the same over the year with 2017 being no exception: 14 cents per mile driven in service of charitable organizations
What does this mean?
As an Everlance member you do not have to worry about changing anything in the app. Starting January 1, 2017 the app will change automatically to reflect the new 2017 Standard Mileage Rate of 53.5 cents per work mile, 17 cents for medical and moving miles and 14 cents per mile for charity.
As always, we would love to hear from you. Please drop us a line at email@example.com.
*2017 Standard Mileage Rate info provided by IRS - https://www.irs.gov/uac/2017-standard-mileage-rates-for-business-and-medical-and-moving-announced