Due to COVID-19, most court functions in the state have been suspended. In addition, our office is working remotely. For assistance, please email esr@mmzlaw.com with your contact information and the legal matter you need help with and someone will be in touch. If you are seeking help regarding a Will, Financial, or Health Care Power of Attorney, every effort will be made to respond as quickly as possible.

IRS SETS 2019 MILEAGE REIMBURSEMENT RATE FOR TRAVEL

Every year the IRS issues its Standard Mileage Reimbursement Rate, which determines the amount that can be used as a tax deduction for business travel. It also serves as a guideline for employers who reimburse their employees for miles driven.

Standard Mileage Reimbursement Rate for 2019

As of January 1, 2019, the rate has been raised to 58.0 cents per business mile driven, 3.5 cents higher than the 2018 rate. The rate for medical or moving expenses has also been raised 2 cents to 20 cents per mile. The rate for charitable purposes remains at 14 cents per mile.

While employers are not required to use the IRS rate to reimburse employees, the IRS will deem employers who make reimbursements up to 58.0 cents per mile as meeting their accounting requirements. As a result, such employers will not be required to report the reimbursements to the IRS, nor will they have to perform any tax withholding. On the other hand, employees who are not reimbursed for their business mileage will be able to deduct 58.0 cents per mile on their individual tax returns.

If you have any questions about how the mileage rates affect your tax status, or any other legal concerns, please contact us via our online form or call us at 717-397-5500.

Like what you have read so far?
Let us help you!

Author Bio:

Matt Grosh is an attorney at May, Herr & Grosh. He practices in the areas of estate planning and administration, corporate law, nonprofit organizations and taxation.

This blog is being published for educational purposes only as well as to provide general information and a basic understanding of the law, not to provide specific legal advice. By entering this site you understand that there is no attorney client relationship between you and the publisher. This site should never be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Let us Help!

If you found this post helpful and would like more advice from an experienced lawyer, fill out the form below to connect.

  • Disclaimer: The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

  • This field is for validation purposes and should be left unchanged.