Mileage Allowance and Rates

Keeping track of your mileage can add up to big savings on your tax return. The most important thing to remember is that you must keep accurate records in order for the deductions to be allowed. Listed below are the most common deductions for mileage and how you can take advantage of them.

Medical Expenses
Generally, you can claim a medical expense deduction for yourself (and your spouse if married filing jointly) or your dependent driven primarily for, and essential to, medical care. The standard rate for 2009 is 24 cents per mile. You can also deduct parking fees and tolls.

Charitable Purposes
You can claim a charitable contribution deduction of 14 cents per mile for performing services for a charitable organization. You can also deduct parking fees and tolls.

Job Seeking Purposes
Mileage expenses incurred while seeking new employment in the same occupation are deductible. The standard mileage rate for 2009 is 55 cents per mile. Parking fees and tolls are also deductible.

Employee Business Expense 
Mileage expenses incurred while using your car for business purposes at the request of your employer are deductible. Also, mileage expenses going from one job to another job or from your job to school is deductible. The mileage rate for 2009 is 55 cents per mile. You may deduct expenses for local travel that is between your main job (your principal place of business) and a second job. You cannot deduct the cost of taking a bus, trolley, subway, taxi or of driving a car between your home and your main place of work (commuting expenses).

Educational Expense 
If you are regularly employed and go directly from home to school on a temporary basis for improving your job skills, you can deduct the round-trip costs of transportation between your home and school. If your education meets the requirements for qualifying education, you can deduct 55 cents per mile.

Moving Expense
If certain conditions are met, you can deduct you can deduct 24 cents per mile for 2009. Tolls and parking fees can be deducted as well. Talk to your tax preparer to see if you qualify.

Record Keeping Requirements
It is important to keep accurate mileage records for claiming a mileage deduction. The records to keep are:

• Total miles for the year
• Mileage for each business use
• Times and dates
• Place/address
• Business purposes
• Charitable purposes
• Educational purposes
• Medical purposes

Liberty Tax professionals are available for your tax needs. Please call your local Liberty Tax office for further information.