2010

For 2010, the standard mileage rate deduction is as follows:

1. 50 cents per mile for business use of a vehicle;
2. 16.5 cents per mile for use of vehicle for medical or moving purposes; and
3. 14 cents per mile for use of a vehicle for service to charitable organizations.

For 2009, the standard mileage rate deduction for business use of a vehicle is 55 cents per mile. For 2009, taxpayers can deduct 55 cents per mile for the cost of operating a car, van, or light truck for business use. In 2009, the mileage deduction is 24 cents per mile for use of vehicle for medical or moving purposes. In 2009, the mileage deduction remains 14 cents per mile for use of a vehicle for service to charitable organizations.

California Employers Must Reimburse Their Employees For Mileage.

Although taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the optional standard mileage rates, under California Labor Code Section 2802, California employers are required to reimburse employees for all expenses incurred by the employee in performing their duties, including expenses for travel, dining, and mileage (other than to and from work/home). The employee cannot agree to waive this right to receive reimbursement. In addition, the California Labor Commissioner has stated that any employer who reimburses its employees at less than the standard IRS mileage rate will have to prove that the employee's actual expenses were in fact less than the standard IRS mileage rate, or be subject to liability for the difference.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained on this web site is not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed on a taxpayer under the U.S. Internal Revenue Service.