1. What is Mileage Tax Deduction?

The mileage tax deduction allows taxpayers to deduct certain vehicle expenses when the vehicle is used for business, charitable, medical, or moving purposes. The standard mileage rate is set annually by the IRS.

2. How Does the Calculator Work?

The calculator uses the standard mileage formula:

Where:

• Business Miles — Total miles driven for business purposes
• IRS Mileage Rate — Current standard rate per mile (changes annually)

Explanation: The calculation provides an estimate of your potential tax deduction for business use of your vehicle.

3. Importance of Mileage Tracking

Details: Accurate mileage records are essential for tax compliance and maximizing deductions. The IRS may require documentation of your mileage claims.

4. Using the Calculator

Tips: Enter your total business miles and the current IRS mileage rate (default is 2023 rate of $0.655/mile). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current IRS mileage rate?
A: For 2023, the rate is $0.655 per mile for business use. Check IRS.gov for annual updates.

Q2: Can I use this for medical or moving mileage?
A: Yes, but different rates apply (2023: $0.22/mile for medical/moving). The calculator can be used with any rate.

Q3: How should I track my miles?
A: Keep a detailed log with dates, destinations, purposes, and odometer readings. Many apps can automate this.

Q4: Can I deduct commuting miles?
A: No, regular commuting from home to work is not deductible. Only business miles beyond normal commute qualify.

Q5: Should I use standard mileage or actual expenses?
A: Compare both methods. Standard mileage is simpler but actual expenses may yield higher deductions for some vehicles.