When tax season comes around it’s always prudent to deduct as much as you legally can. One of the most useful deductions is the mileage deduction. You can only deduct specific categories of mileage so you have to keep track of your deductible miles and their purpose.
Business Drives
Driving to work, driving somewhere for the company, even searching for a job (in the same field as your last job) can count as a business deductible expense. The rate of business tax mileage deductions is $0.55 per mile, so if you drove 1000 miles for your job, you would get a deduction of $550.00.
Medical or Moving
If you drove yourself, your spouse or any of your dependents to get medical help, you can write that off at a rate of $0.24 per mile. You can deduct the same rate for moving to a new job at least 50 miles away, as long as you work 39 full time weeks in the following year, and at least 78 full time weeks in the first two years in the new location.
Charity
While you can’t deduct any amount donated unless specified otherwise, you can deduct the miles you drove to get to the place of donation at a rate of $0.14 per mile. You can also deduct at that rate if you drive for a charitable business. If you drove 40 miles to help construct a school, you could deduct $5.60.
If you want more information, visit TurboTax Online. Besides all the free information, filing a tax return with TurboTax Online is incredibly simple and easy.
