Did you know that the standard mileage rate for 2016 has changed from 2015?
Info provided by IRS.gov
Generally, the standard mileage rate only goes up as the cost of operating a vehicle increases (inflation, cost of gasoline, etc.) but for 2016 the expense amount has actually been reduced from 2015.
As you can see above there is a 3.5 cent per mile difference for business travel and a 4 cent per mile reduction for medical travel while the charitable travel rate has stayed the same from a year ago. The new company mileage rates went into effect on January 1, 2016.
You might be wondering why the federal reimbursement rate is now lower. The answer is simple – the price of gas has dropped significantly, which is one of the larger inputs into the standard mileage rate. With the national average for gas sitting at $1.99, taxpayers are paying 79 cents per gallon lower than in 2015 (*1).
So, make sure you are using the correct standard mileage rate this year and keep tracking all those miles — with the rate going down this year it’s even more important than ever that you track them all.
Image provided by pixabay.com | License CC0