2009 Tax Tips

driving-traffic Ah, January, and the sound of birds chirping fills—the over active imagination of the author who longs once more for summer.  But, more relevant to people looking for real world personal finance advice, new laws and tax numbers abound.  Today, we tackle one of the simpler ones.

IRS 2009 Standard Mileage Rate

Every year, the IRS sets the “optional standard mileage rates” that can be used to calculate the deductible cost of driving an automobile.

Contrary to popular belief, this number in no way legally binds anyone to paying this amount to reimburse you expenses you incur while driving your vehicle.  Most companies voluntarily use the same standard as it makes it easier to defend to employees (Hey, don’t look at us, the IRS sets the rate) and also because then the amount matches up if they ever have to defend the deduction they take for such a reimbursement. 

The new 2009 IRS Standard Mileage Rate is:

  • 55 cents per mile for business miles driven
  • 24 cents per mile for medical or moving purpose miles
  • 14 cents per mile for charitable purpose miles

The charitable mileage rate isn’t actually set by the IRS, it is codified in law, so it hasn’t changed from 2008 and won’t unless Congress passes a law changing the rate.

Mid-Year Mileage Rate Change

Last year, the IRS adjusted the reimbursement rate in mid-year due to higher gasoline prices.  There is no requirement that they do so this year.

More Than Gas

One thing to always keep in mind, is that the mileage rate is not meant to cover the amount spent on gas.  While gas prices are a significant factor in the number, the mileage rate is also intended to account for wear and tear and depreciation of the automobile.

More IRS 2009 numbers coming soon.  Grab the RSS Feed to keep up to speed.


Technorati Tags: IRS,Federal Income Taxes,Mileage,2009 Numbers,Tax Deductions

2 thoughts on “2009 Tax Tips”

  1. I’ve been engaged in taxes for longer then I care to admit, both on the personal side (all my working life story!!) and from a legal point of view since passing the bar and pursuing tax law. I’ve provided a lot of advice and rectified a lot of wrongs, and I must say that what you’ve posted makes impeccable sense. Please uphold the good work – the more individuals know the better they’ll be equipped to handle with the tax man, and that’s what it’s all about.


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