The IRS announced its new standards for mileage rates for the second half of the 2011 year. Starting July 1 the new rates will take effect.Â The Wall Street Journal reports that after the first “the rate for business miles increases to 55.5 cents from 51 cents and to 23.5 cents from 19 cents per mile for medical and moving expenses. The per-mile deduction for charitable expenses remains unchanged, at 14 cents” giving taxpayers a higher rate of tax relief deductions.
Laura’s article Standard Mileage Rates Increased, also notes that unlike other tax rates set by the IRS, Congress is the one that actually sets the rates for mileage, and it has been that way since 1984. Because of this the rates all vary and the charitable expense rate lags behind the business and moving/medical expense rate for some years now. “In its push for tax simplification, the American Institute of CPAs has asked Congress once again to allow the IRS to set all mileage rates andÂ make the medical, moving, and charitable rates the same. The AICPAâ€™s proposal also asks that the three non-business mileage rates be a fixed percentage (at least 50% and as high as 70%) of the business mileage rate.” To set the mileage deductions to the same rate would mean a simpler process of tracking and reporting the three different types of mileage for taxpayers.
More Tax Help, IRS News and Tax Relief Tips:
- Charitable Deductions Can Help with Tax Relief, but the IRS Wants the Proof
- Tax Relief for Students
- Tax relief tip: Remember the 14-day rule when renting out your home
- Tax Relief News: Business Vehicles Get New Tax Breaks
- Tax Relief Home Energy Credit Still Available for 2011