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    NEWS: IRS Increases Standard Mileage Rates for 2018

    The IRS has issued the optional standard mileage rates for use of a vehicle in 2018. Beginning January 1, 2018, the standard mileage rates will be:

    • 54.5 cents/mile (up from 53.5 cents per mile in 2017)
    • 18 cents/mile for medical or moving purposes (one cent higher than in 2017)
    • 14 cents/mile for service to a charitable organization (unchanged)

    Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile (including vans, pickups, and panel trucks). It is possible to use more than one rate on your return, so be sure to keep accurate records of any non-personal use of your vehicle.

    *Note that the two current tax reform proposals currently before Congress would eliminate the mileage deduction for moving expenses and job-related business mileage deductions for employees filing a Schedule A. Both proposals would also disallow (on the employer’s side) favorable tax treatment for employer reimbursement of employee moving expenses. Therefore, it is unclear how much these mileage rate changes will affect the average taxpayer. (In the Senate version of tax reform, these deductions would sunset beginning in 2026 -- meaning they’d go back to the way things are now.) Both proposals would retain the charitable deduction, including charitable miles and allow you to deduct business miles related to your trade or business. We’ll keep you posted on tax reform as it progresses.

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