(619) 497-1040 Anthony@awicpa.com
Federal Mileage Rate

When determining your business’s annual vehicle expenses, you generally have the option of using actual expenses incurred or the Federal Mileage Rate.

Who Uses the Federal Mileage Rate

Using the Federal Mileage Rate primarily involves keeping track of miles driven in the course of business. This method makes it a little easier to expense vehicle costs as opposed to keeping track of individual receipts. It is also a good method to use when creating an accountable plan where you are reimbursing employee auto expenses.

But, as you’ll see in the chart below, there is also a Federal Mileage Rate for Medical/Moving and Charitable miles driven. The rates for Medical and Charitable miles are, as one would expect, used for individual Medical and Charitable deductions.

However, Moving miles are only deductible for members of the Armed Forces on active duty who are moving due to military orders requiring a permanent change of station.

The calculation is simple…

Multiply business miles by the appropriate rate.

The problem is actually keeping track of those business miles!

Keeping Track of Miles

Keeping track of business miles is real pain… Having a mileage log in your vehicle and REMEMBERING to write down business miles.

Fortunately, there is technology that can make keeping track of business mileage relatively pain free. I found this product looking through the QuickBooks Online apps webpage:

Mileage, Fleet and Vehicle Expense Tracking – TripLog

This app costs $60 a year. While I havn’t used it myself, it appears to be an efficient way to keep track of business miles. The $60 price tag may seem steep for some, but if you spend a lot of time working out of your car, salespeople for example, this app seems like a no-brainer purchase!

Federal Mileage Rates

Rates in cents per mile

Business

2021

56

2020

57.5

2019

58

2018

54.5

2017

53.5

2016

54

2015

57.5

2014

56

2013

56.5

2012

55.5

Rates in cents per mile

Charity

2021

14

2020

14

2019

14

2018

14

2017

14

2016

14

2015

14

2014

14

2013

14

2012

14

Rates in cents per mile

Medical & Moving

2021

16

2020

17

2019

20

2018

18

2017

17

2016

19

2015

23

2014

23.5

2013

24

2012

23