IRS Announces 2018 Mileage Rates
The Internal Revenue Service (IRS) has issued the 2018 optional standard mileage rates and beginning on January 1, 2018, the standard mileage rates for the use of a car, van, pickup or panel truck will be:
- 54.5 cents per mile for business miles driven (up from 53.5 cents in 2017)
- 18 cents per mile driven for medical or moving purposes (up from 17 cents in 2017)
- 14 cents per mile driven in service of charitable organizations (currently fixed by Congress)
Whether these 2018 rates will impact most taxpayers in 2018 isn’t yet clear. The current tax reform proposals would eliminate the mileage deduction for moving expenses and job-related business mileage deductions for employees filing a Schedule A. In addition, both proposals would disallow – on the employer’s side – favorable tax treatment for employer reimbursement of employee moving expenses. However, under Senate version of the bill, the tax treatment of these deductions would sunset, which means that the treatment of expenses would go back to the way the law is now (in 2017) beginning in 2026.
Both proposals would retain the charitable donation deduction, including for charitable miles.
MileCatcher will default to the 2018 rates January 1st Similarly, MileCatcher will update rates for other countries when available. Contact [email protected] for any questions.