Friday, June 27, 2008

Rates Increase

The government has approved new mileage rates beginning July 1. With oil over $140 per barrel it's about time.

Charitable trips remain at $.14 per mile. These miles are claimed on Schedule A of your Form 1040. If you drive to help at a soup kitchen, serve on a PTA committee or event, volunteer at a Habitat for Humanity site, or drop off used clothing at Goodwill, record the date, reason, and miles driven to support your deduction.

Medical and moving miles will increase from $.19 to $.27 per mile. These miles have specific restrictions. Visit IRS.GOV for details.

Business miles which are currently $.505/mile will increase to $.585 beginning Tuesday. These are not commuting miles but miles necessary to earn a living or are reimbursed by an employer.

If you track your business miles on a log because you use your personal car, reset the rate for the second half of the year.

'til later

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