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IRS Mileage Rate for 2013

When you work for yourself, you get to experience a wealth of benefits. One of these many benefits is that you have a lot of expenses that you can write off to lower your amount of taxable earnings. Out of these many deductions, the most popular seems to be business mileage. 

This deduction means that any sort of mileage that you undertake for business purposes can be easily turned into a generous tax deduction. This can be very beneficial for anyone that gets to reap its rewards and it is important that you are aware of the IRS mileage rates for this particular year. 

Every single year the IRS changes the rate that you can deduct business mileage. This means that you must always check the new rate for each year so that you are aware of it. The change is typically quite small, but it is still there. The last few years, however, there were some rather large increases. 

There are various reasons for this. The main reason for these larger changes is most likely because of the high prices of oil. In any event, the rates are what they are and it is important to educate yourself about them. 

New Rates in January

Starting January 1, 2013, the IRS mileage rate are set at 56.5 cents per mile for business transportation. It is 24 cents for medical care and 14 cents for charity purposes. To calculate this, all you must do is multiply the amount of miles you drive in 2013 by 56.5 cents. 

For example, if you drove 3,000 miles in 2013 then you would multiply 3,000 by 56.5. You would get a total write off of $1,695. It is simple to do, but make sure you always keep records of the miles that you drive just in case you get audited. That can be stressful process so you want to be as prepared as possible. 

This means that this deduction is only used for the 2013 year. When you sit down on April 14th, 2013 to prepare your taxes, you will use all of the information for 2012 to do your taxes. You will use the 2013 rates on April 14th, 2014. That is when you will prepare your taxes for the 2013 year. 

It is essential that you keep this in mind so that you do not make a large mistake on your taxes. The IRS is not very understanding when it comes to your taxes. 

The best way to ease the pain of the year's tax bill is through your deductions. When used correctly, you can get a sizable deduction through your business mileage. This deduction can help you a great deal each and every year so it is best to get used to using it. 

It is also important that you document everything in the off chance that you get audited. This way, you will be prepared for that stressful time. It is vital that you are aware of the IRS mileage rate for your tax year.