Allowed Job, Work, Gas, & Travel Mileage Deduction Amount 2011, 2012

There can be potentially huge tax savings by deducting your vehicle mileage. There are many reasons that your mileage may be tax deductible. If you must travel for your job and use your own vehicle, then you may be able to claim a mileage tax deduction.

You can choose to take these optional standard rates if you are an employee, self-employed, and all other taxpayers if you have vehicle operating costs that fall in to tax deductible categories.

What is deductible?

• Mileage for Work Related Travel

• Medical Travel Mileage

• Moving Travel Mileage

• Servicing for Charitable Organization Mileage

Mileage Tax Deduction Amounts

• 51 Cents Per Mile For Business

• 14 Cents Per Mile For Charitable

• 19 Cents Per Mile For Medical

• 19 Cents Per Mile For Moving

It is wise to keep track of any miles driven for business, medical, charity, or moving so you can claim the IRS mileage deduction tax break. The IRS mileage rate for business purposes is 50 cents per mile. The mileage tax deduction rate for moving or medical purposes is 16.5 cents per mile.

The mileage deduction rate for charitable travel will remain the same at 14 cents per mile. The standard rate for business, moving, and medical comes from an annual study that is done to determine the costs of operating a vehicle. The IRS will usually hire an outside company to complete this study. The standard rate for charitable travel is set by a previous statute and has not seen any recent increase.

There are many tax deductions available for tax payers. Above are just a few of them. To learn how to claim more tax deductions and get a bigger refund, please visit TurboTax Online. TurboTax Online offers free tax software to help you maximize your vehicle mileage deductions. You can click on the support tab and enter, allowed mileage deduction amount for job, work, gas, and travel, for the most accurate, current tax information.