Being aware of the rules and regulations that govern IRS mileage rates is very important for motor vehicle owners. Whether operated for medical and charitable purposes or used for business, motorists can save a significant amount of money by staying up to date on the latest policies issued by the IRS for gas mileage reimbursement rates. This is especially true for the current year since an increase in the IRS mileage rate was recently announced in June, 2008. Changes to the IRS standard mileage rates are typically made once every year. However, action was taken earlier by the Internal Revenue Service for an increase in the last six months of 2008 in an effort to compensate for skyrocketing gas prices. A break down of the new IRS standard mileage rates are as follows:
- An increase of 58.5 cents per mile from the pre-existing rate of 50.5 has been established. This IRS mileage rate change provides coverage for individuals who use their vehicles for business purposes.
- Those who operate motors for moving or medical purposes have a new IRS mileage reimbursement rate of 27 cents a mile, an increase from the old rate of 19 cents per mile.
- The only IRS mileage rates which haven’t experienced a change in light of the recent gas price increase are for those vehicles associated with charitable organizations, which will remain at 14 cents per mile. This is because the rates for these types of associations are not mandated by the government.
Vehicle owners can receive their IRS mileage reimbursement when the mileage is deducted from their annual tax return. Under this new IRS mileage allowance, individuals are provided with the opportunity to increase their tax credits for the purpose of saving more money on gas expenditures. In addition to the mileage tax deduction which can be applied to businesses that own up to four vehicles, individuals who use automobiles in order to travel to their place of business may also be eligible for IRS mileage reimbursement rates.
In an effort to further maximize on the benefits provided by the new IRS mileage rates, individuals can explore alternative options in different types of fuel-efficient vehicles. These can include electric hybrid cars, hydrogen fuel cell vehicles and other types of automobiles that run on alternative fuel systems. For those who are unable to afford the purchase of new vehicles, reimbursement benefits from the lower IRS mileage rates can still be gained with the use of hydrogen conversion kits. Along with saving money, these kits allow individuals to make a contribution when it comes to lowering the air pollution in our environment.
While the new IRS mileage rates may not seem like a significant change to some people, the ability to save any amount of money in times of economic hardship is appreciated by most citizens. In addition to the IRS mileage reimbursement rates currently in effect, motorists can also search for other ways to increase their tax savings and decrease fuel expenses. In the meantime, individuals can continue benefiting from the lower gas mileage rates which are being enforced by the IRS for the remaining six months of 2008.