The Internal Revenue Service (IRS) recently unveiled the standard mileage rates for the upcoming 2024 tax year. For individuals utilizing their personal vehicles for business-related purposes, being informed about these updated rates can lead to more substantial tax deductions.
The new 2024 standard mileage rate for business driving is 67 cents per mile—an increase from 2023's rate of 65.5 cents per mile. The adjustment accounts for higher anticipated maintenance and fuel costs in the coming year. The medical and moving mileage rate holds steady at 22 cents per mile. Charitable organization mileage also remains fixed by Congress at 14 cents per mile.
Taxpayers have the option to either utilize the standard mileage rates or deduct actual vehicle expenses, provided they maintain detailed records of costs such as gas, insurance, repairs, oil changes, and more. For those who opt for the standard rates, it is crucial to diligently track qualifying miles driven throughout the year. Regardless of the rates chosen, maintaining meticulous mileage logs is essential for successfully claiming deductions.
Strategies for Mileage Tracking Success
The IRS recommends taxpayers back up claimed mileage deductions with proper documentation. We recommend leveraging a GPS-based tracking app such as MileIQ to automatically log your miles. That said, the best system is the one you’re most comfortable with. Some of our clients prefer to carry a small notepad for logging start/stop odometer readings and total miles while on the go. Others plot expected routes and look up mileages ahead of business travel. The most important thing is that a record exists so that you don’t leave any deductions on the table!
As you look ahead to your 2024 taxes, you may want to consider implementing a system to track qualifying miles driven. Please don't hesitate to reach out if you have any other questions about documenting your mileage or maximizing your deductions!