Last month the IRS issued Notice 2013-80, announcing the 2014 updated standard mileage rate. As of January 1, 2014, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 56 cents per mile for business miles driven
- 23.5 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
The business, medical, and moving expense rates decrease one-half cent from the 2013 rates. The charitable rate is based on statute.
To determine the minimum mileage rate, the IRS conducts an annual study of the fixed and variable costs of operating an automobile. It is believed that a dip in fuel prices last year is the probable reason for the rate shift. In the notice, the IRS reiterated that taxpayers are not required to use the standard mileage rate should they prefer to track and deduct the actual costs of travel themselves.
Tallie engineers have adjusted the default mileage mapping calculations setting to reflect the new IRS 2014 standard mileage rate. Current Tallie accounts using the default setting have been automatically converted to reflect the new rate, while accounts using any custom set auto-calculated mileage rate have been left unchanged.
To view, edit or add new mileage rate categories, log in to your administrator account and select the Settings tab. From there, click on the Manage Lists link, followed by Expense Categories and then Mileage.
Additional Mileage Rate Information from the IRS Website:
“Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.”
“A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.”