The IRS recently posted the 2017 mileage rates. These are the rates at which the IRS permits a deduction if you drive for business, medical, and charity. They are also used by many employers as the reimbursement rate for mileage you drive for work.
Starting January 1, 2017, the standard mileage rates for the use of a car, van, pickup or panel truck will be:
- 53.5 cents per mile for business miles driven, down from 54 cents in 2016
- 17 cents per mile driven for medical purposes, down from 19 cents in 2016
- 14 cents per mile driven for charity, unchanged from 2016
You can claim at deduction if you use your personal vehicle for your business, medical, or charitable purposes.
Here’s a breakdown of what is covered for each:
Business Mileage
With business mileage, you can deduct mileage for all work related driving. However, your commute to work cannot be deducted. If you are self-employed any driving you do directly related to your business like meeting with a client or going to a networking event is generally deductible business mileage.
Medical Mileage
You can claim medical miles for driving to receive medical care. You can also deduct driving for your family which includes you, your spouse, or your children. This deduction is added to your medical deduction, which means it will only be included if your total medical expenses exceed 10% of your adjusted gross income (7.5% if you are 65 and over).
Charitable Mileage
You can claim charitable mileage for driving you do in service of a recognized 501 (c)(3) charitable organization.