IRS Mileage Rate for 2011, 2012

You will want to make sure you claim the IRS mileage rate on your tax return and keep track of the miles you put on your vehicle, if you use your personal vehicle for business-related travel.

IRS Mileage Rate

The standard mileage rate changes every year because gas prices change and the economy shifts and also changes every year. To keep up with all of the changes and to keep vehicle mileage rates fair, the IRS actually conducts studies by a third party to determine the new IRS mileage rate for each year.

For 2011, the IRS mileage rate is 51 cents per business mile driven.

The standard rates are for the use of a car, van, pickup or panel truck. The standard rate per mile driven for medical or moving purposes is 19 cents per mile and you may claim 14 cents per mile driven in service of charitable organizations.　

With the effects of the economy many consumers are buying lower price vehicles that will use less gas. This decrease in fuel usage causes demand to lower thus reducing the price of gas.

Standard IRS Mileage Rate or Actual Vehicle Expenses

If you use your personal vehicle for business, you need to weigh your options for your tax deduction. You have the option to claim the IRS standard mileage rate times the number of miles you have driven or you may deduct actual costs of the vehicle and driving expenses. You may not claim mileage if you use the depreciation method under the Modified Accelerated Cost Recovery System.　

Maintain Accurate Records For Claiming The IRS Mileage Rate

Whether you choose to claim your actual vehicle expenses or claim the standard mileage rate, you must keep accurate records of your expenses and mileage. Receipts are the easiest way to keep record of your actual costs for repairs, fuel, etc… and at the end of the year when your ready to total your expenses into your tax form, you're all ready.

For more information about the IRS Mileage Rate and answers
to all your tax-related questions and to claim your IRS mileage this year,
visit TurboTax Online.