Mileage Deductions

IRS Mileage Rate

Keep track of your deductible mileage on your vehicle and you could see big savings on your tax return. Remember that you MUST keep accurate records in order for the deductions to be allowed. Listed below are the most common mileage deductions and how you can take advantage of them. A standard IRS mileage rate applies to each type of deduction. Parking fees and tolls for any of these purposes can be claimed in addition to the mileage.

MEDICAL OR MOVING EXPENSES
This includes miles driven to and from doctors and dentists, and trips to the pharmacy to pick up prescriptions. Taxpayers who have moved at least 50 miles during 2013 in order to start work at a new work location in their field of employment may be able to deduct some moving expenses.

19 cents per mile from January 1-June 30, 2013 
23.5 cents per mile from July 1-December 31, 2013 
23 cents per mile in 2012.
CHARITABLE PURPOSES
Miles driven for volunteer work and for charitable organizations and functions is tax deductible.

14 cents per mile in 2013 and 2012 
The first step is to record your odometer reading on January 1st, and then keep a log or written records of mileage throughout the year.   

Commuting miles, the miles driven from home to an office, are not allowed.  Students who are taking courses that are required by their employer, or are work-related, may deduct this mileage at the business mileage rate.  

Separate commuting and personal mileage from the mileage driven for business, medical or moving, and charitable purposes.  The easiest way to document mileage is to write it all down in a log or notebook.

JOB SEARCH PURPOSES
Mileage expenses incurred while seeking new employment in the same occupation are deductible. The standard mileage rate from July 1, 2013 to December 31, 2013 has been increased to 55.5 cents per mile from 51 cents per mile January 1, 2013 through June 30, 2013.

BUSINESS MILES
Mileage driven for business purposes if self-employed or at the request of your employer is deductible. Those who work at two places in one day can deduct the expense of getting from one workplace to the other.  Students taking classes that are work-related can deduct mileage to and from class at the business rate.     

51 cents per mile from January 1- June 30, 2013 
55.5 cents per mile from July 1 through December 31, 2013  
55.5 cents per mile for 2012.

EDUCATIONAL EXPENSE (FOR A JOB-RELATED EDUCATION)
If your education qualifies, you can deduct local transportation costs of going directly from work to school. If you are regularly employed and go to school on a temporary basis, you can also deduct the costs of returning from school to home. The qualifying job-related education rate is 5cents per mile January 1, 2013 through June 30, 2013 and 55.5 cents per mile from July 1, 2013 to December 31, 2013.

RECORD KEEPING REQUIREMENTS
It is important to keep accurate mileage records for claiming a mileage deduction. The records to keep are:

Total miles for the year
Mileage for each deductible use
Times and dates
Place/address
Business purpose
Charitable purpose
Educational purpose
Medical purpose
Moving purpose
Liberty Tax® professionals are available for your tax needs. Please call your local Liberty Tax office for further information.

CLIENT CHECKLIST  

What to bring to your Liberty Tax client interview:  

PERSONAL INFORMATION FOR EACH  

FAMILY MEMBER:  

o    Name  

o    Date of Birth  

o    Social Security Card  

   
ALSO:

o    Last Years Tax Return  

o    Valid Drivers License  

INCOME AND TAX INFORMATION:  

o    W-2s  

o    Interest (1099-INT or substitute)  

o    Dividend (1099-DIV or substitute)  

o    Stock Sales (1099-B or Broker Statement)  

o    Self-Employment Income (1099-MISC or record of payments)

o    Sale of a Personal Residence  

o    Rental Income  

o    Sale of any Business Assets  

o    Gambling or Lottery Winnings  

o    State Income Tax Refund  

o    Pension Income (1099-R, RRB-1099, CSA-1099)  

o    Any Estimated Taxes Paid  

o    Social Security or Railroad Retirement  

o    IRA or 401(k) Distribution (1099-R)

o    Unemployment Compensation  

DEDUCTIONS/ADJUSTMENTS:  

o    Medical Expenses  

o    Real Estate and/or Personal Property Taxes  

o    Mortgage Interest  

o    Charitable Contributions  

o    Employee Business Expenses  

o    Gambling Losses  

o    Moving Expenses  

o    Traditional IRA Contributions  

o    Certain Education Expenses  

TAX CREDITS:  

o    Child Care Provider/Address and Social Security  

o    Number or Employer Identification Number  

o    Adoption Expenses  

o    Retirement Savings Contributions