2014 Standard Mileage Rates Announced by IRS

2013 IRS Mileage Rate Follow Me on Pinterest I have written before about standard mileage rates but today I’d like to give you an update. The IRS has released the new standard mileage rates for 2014 that many companies use to reimburse you for business miles driven on your personal vehicles.

You can also use these rates for deducting business use of your personal vehicle if you run your own business. Remember, despite what many people may think or say, you don’t make money on mileage reimbursement.

2014 IRS Standard Mileage Rate

For 2014, the IRS standard mileage rate is 56 cents per mile which is a decrease of just one half of a cent over 2013′s 56.5 cents per mile. If you drive 1,000 miles on business it would amount to a $10.00 smaller reimbursement from your employer or deduction on your tax return.

2014 Medical and Moving Mileage Rate

For 2014, the IRS medical and moving mileage rate is 23.5 cents per mile which, like the IRS standard mileage rate, decreased one half of a cent over 2013′s rate which was 24 cents for medical and moving mileage.

2014 Service to a Charitable Organization Mileage Rate

For 2014, the IRS service to a charitable organization mileage rate remained the same as it was in 2012 at 14 cents per mile.

You can read the official IRS notice here.

What do you think about the mileage rates for 2014? Did they increase enough or do you think it was a fair adjustment?

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About Lance Cothern

Lance Cothern, a Certified Public Accountant (CPA) licensed in the Commonwealth of Virginia, is the founder of Money Manifesto. You can read more about him here or connect with him on Facebook, Twitter, Google+ or Pinterest.

Comments

  1. Hmm I don’t drive enough for my business to even notice, but I’ll take an increase!

  2. I think it’s a fair increase. I’ll take any kind of increase. We have about 2,000 miles to account for this year and am sure we’ll have the same if not more next year, so I’ll happily take what I can get.

  3. My mileage deduction is insignificant. When I was consulting, this was much more meningful. Is it fair? Yes, because it includes depreciation and maintenance, but it is for the average vehicle which may or may not reflect your car.

  4. I’ve never used the Charitable Organization Mileage Rate deduction. What does that actually cover?

    • I think it is mileage to and from a qualified charitable location if you volunteer, but I’m not 100% certain so it’d be best to ask your accountant.

  5. Thanks for the update. An increase is always a good thing, and I hope it is the same for the whole year. In 2011, I have to take one mileage rate for half the year, and another for the latter half. Really annoying for preparing tax returns…

    Luckily I’ve trained most of my client to kep a good mileage log.

  6. I wish I could use this for my drive to work! I don’t drive for work outside of that, though, so whether it’s $0.55 or $5.55, it doesn’t really affect me.

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