IRS 2024 Mileage Rate – Eligibility, Key Changes, How to claim?

The IRS has announced the standard mileage rates for 2024, which will be effective from January 1, 2024. The standard mileage rate for business use of a vehicle (cars, vans, pickups, and panel trucks) will be 67 cents per mile, up 1.5 cents from 2023. 

IRS 2024 Mileage Rate

The IRS has announced the standard mileage rates for 2024, which will be effective from January 1, 2024. The standard mileage rate for business use of a vehicle (cars, vans, pickups, and panel trucks) will be 67 cents per mile, up 1.5 cents from 2023. 

The rate for medical and moving purposes will be 21 cents per mile, up 1 cent from 2023, while the rate for charitable purposes will remain at 14 cents per mile. The IRS determines and adjusts rates based on the costs of owning and operating a vehicle.

The standard mileage rate represents an estimate of the per-mile costs of using a car, based on nationwide averages in the previous year. 

IRS Mileage Rate Eligibility 

The eligibility for using the IRS mileage rate depends on the purpose of your driving and your taxpayer status:

Business Use:

  • Eligible:
    • Own the car or truck you’re driving
    • Use the car for work purposes, such as attending meetings, visiting clients, or making deliveries
    • Adequately document your mileage (a mileage log is recommended)
  • Not Eligible:
    • Lease or rent the car you’re driving
    • Use the car for personal purposes, such as commuting to and from work
    • Are self-employed but claim the home office deduction for the same miles

Medical and Moving for Active Duty Military:

  • Qualified active-duty member of the Armed Forces
  • Driving under orders to a permanent change of station or receiving medical care
  • Own the car or truck you’re driving
  • Adequately document your mileage

IRS Mileage Rate

Charitable Mileage:

  • Volunteer for a charitable organization
  • Use the car for volunteer activities
  • Own the car or truck you’re driving
  • Adequately document your mileage
  • You can only use the standard mileage rate for one vehicle per family.
  • If you claim actual vehicle expenses in one year, you cannot switch to the standard mileage rate the next year without IRS approval.

IRS 2024 Mileage Key Changes

  • Business Mileage: 67 cents per mile, up from 65.5 cents in 2023. This is the most commonly used rate and applies to miles driven for work purposes, such as attending meetings, visiting clients, or making deliveries.
  • Medical and Moving for Active Duty Military: 21 cents per mile, down from 22 cents in 2023. This rate applies to qualified active-duty members of the Armed Forces who are moving under orders to a permanent change of station or receiving medical care.
  • Charitable Mileage: 14 cents per mile, unchanged from 2023. This rate applies to miles driven while volunteering for a charitable organization.

Claiming the standard mileage rate on your tax return

To claim the standard mileage rate on your tax return, follow these steps:

  • Determine the standard mileage rate: For 2024, the standard mileage rates are as follows:
    • Business use: 67 cents per mile
    • Moving or Medical reasons: 21 cents per mile.
    • Charitable purposes: 14 cents per mile
  • Record the number of miles driven for the specific purpose: Maintain an accurate record of the number of miles driven for the purpose you want to claim a deduction for. This can be done using an IRS-compliant mileage log.
  • Calculate the deductible costs: Multiply the relevant standard mileage rate by the number of miles driven for the specific purpose. For example:
    • Business use: 67 cents per mile number of miles driven for business purposes
    • Medical or moving purposes: 21 cents per mile number of miles driven for medical or moving purposes
  • Complete the appropriate tax form: Depending on your tax situation, you will need to fill out a specific tax form to claim the standard mileage deduction. For most taxpayers, this will be Form 1040, Schedule A, or Form 2106.
  • Claim the deduction: Include the calculated deductible costs on your tax return. The deduction is typically claimed on Form 1040, Schedule A, or Form 2106, depending on your tax situation.

Tips to maximize savings on IRS Mileage Rate 2024

To maximize savings on the 2024 IRS mileage rate, consider the following tips:

  • Stay Informed: Regularly check the IRS website or reliable financial news sources for updates on the 2024 mileage rates. 
  • Update Your Record-Keeping Procedures: Make sure your procedures for keeping records are in line with the latest mileage rate as it changes. 
  • Speak with an Expert in Taxation: If you’re feeling confused by the complexity of tax deductions, you might want to consult a tax expert.
  • Utilise Digital Tools: Using digital tools or apps for tracking mileage can simplify the process.

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