The new mileage rates are out for 2021 and if you haven’t had a chance to review them, we have all of the information you need in this blog post. Below are the mileage rates for 2021:
Business Use: The new rate is 56 cents per mile. This is down 1.5 cents from the 2020 rate of 57.5 cents.
Medical or Moving Use: The 2021 rate is 16 cents per mile. This rate is down 1 cent from 17 cents in 2020.
Charitable Use: This rate remains the same from 2020 at 14 cents per mile.
It is important to remember that since the Tax Cuts and Jobs Act was enacted, taxpayers can no longer claim a miscellaneous itemized deduction for any unreimbursed employee travel expenses. Also, moving expenses can only be deducted by members of the Armed Forces who are on active duty, as long as the expenses are related to orders for a permanent change of station.
Not every individual is able to itemize deductions anymore, but for those who can, below are specifics on what can be included when figuring out your mileage.
Business Use
While driving to and from work does not qualify, if you are required to use your own vehicle to drive to customers or to different locations for meetings, those miles would qualify.
Medical Use
Medical use of a vehicle includes driving to get to doctor and dentist appointments, picking up prescriptions, getting to therapy sessions, and more.
Charitable Use
Do you volunteer for a nonprofit? If so, you can deduct the miles you drive to get to and from the organization’s location, as well as any parking or tolls that you may encounter during the drive. Just a reminder, in order for the mileage to count as a deduction, the organization must be registered as a tax-exempt organization. Find out if the organization you volunteer at qualifies.
If you have any questions regarding mileage and what qualifies, contact us today. We’re here to answer any questions you may have.
Ryder & Company is located in West Lawn, PA and offers a variety of accounting services, part-time CFO services, payroll preparation, and much more! We also offer tax preparation for individuals, as well as businesses and nonprofit entities. We assist many individuals and businesses in and around Wyomissing, Exeter, and Reading.