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Tue Jun 24, 2008 09:52am |
IRS raises mileage tax deduction 16%; now it's 58.5 cents
IRS raises mileage tax deduction 16%; now it's 58.5 cents
By Ryan J. Donmoyer | Bloomberg News
2:20 PM CDT, June 23, 2008
The U.S. Internal Revenue Service increased the mileage deduction for the rest of the year by 16 percent to 58.5 cents a mile because of the rising price of gasoline.
"Given the increase in prices, the IRS is adjusting the standard mileage rates to better reflect the real cost of operating an automobile," said IRS Commissioner Doug Shulman. "We want the reimbursement rate to be fair to taxpayers."
The national unleaded average gasoline price has been above $4 for most of June, according to AAA. Gasoline is more expensive than last year by $1.09 per gallon.
The mid-year IRS adjustment allows Americans to use the higher deduction amount from July 1-Dec. 31 instead of cataloguing actual costs of operating a vehicle for qualified purposes.
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