Question 1

What is the IRS standard mileage rate for 2025?

Accepted Answer

The IRS standard mileage rate for 2025 is 70 cents per mile for business use, 21 cents per mile for medical purposes, and 14 cents per mile for charitable driving. The business rate increased from 67 cents in 2024 due to rising fuel and vehicle costs.

Question 2

What's the difference between standard mileage and actual expense methods?

Accepted Answer

Standard mileage multiplies your business miles by the IRS rate (70 cents for 2025). Actual expense method calculates your total vehicle costs (gas, insurance, repairs, depreciation) and applies your business use percentage. You generally must choose one method in the first year you use the vehicle for business.

Question 3

Can I switch between standard mileage and actual expense methods?

Accepted Answer

If you use standard mileage in the first year, you can switch to actual expenses later. However, if you start with actual expenses and claim accelerated depreciation (like MACRS), you're locked into actual expenses for that vehicle. Always start with standard mileage if you want flexibility.

Question 4

What qualifies as deductible business mileage?

Accepted Answer

Business mileage includes traveling between work locations, visiting clients or customers, going to business meetings, traveling to temporary work locations, and running business errands. It does NOT include your regular commute from home to your primary workplace.

Question 5

Is my commute to work deductible?

Accepted Answer

No, commuting from home to your regular workplace is never deductible, regardless of distance. However, if you have a home office that qualifies as your principal place of business, travel from home to other work locations may be deductible.

Question 6

What records do I need to keep for mileage deductions?

Accepted Answer

The IRS requires contemporaneous records showing date of each trip, destination, business purpose, and miles driven. Use a mileage log, app, or spreadsheet. Keep receipts for actual expenses. Records should be created at or near the time of the trip, not reconstructed later.

Question 7

Can I deduct mileage if I'm an employee?

Accepted Answer

Generally no, after the 2017 Tax Cuts and Jobs Act. Employees can no longer deduct unreimbursed business expenses including mileage on their personal tax returns. However, if you're self-employed, an independent contractor, or have business income on Schedule C, mileage is still deductible.

Question 8

What expenses are included in the standard mileage rate?

Accepted Answer

The standard mileage rate covers gas, oil, repairs, tires, insurance, registration, depreciation, and lease payments. You CANNOT deduct these separately if using standard mileage. However, parking fees and tolls are deductible in addition to the standard rate.

Question 9

Can I deduct parking and tolls with standard mileage?

Accepted Answer

Yes! Parking fees and tolls for business purposes are deductible in addition to the standard mileage rate. Keep receipts and records of the business purpose for each parking or toll expense.

Question 10

Are Uber and Lyft drivers eligible for mileage deductions?

Accepted Answer

Yes, rideshare drivers are self-employed and can deduct business mileage. This includes miles driven with passengers, miles to pick up passengers, and miles between rides if you remain available. Miles commuting to your first pickup and from last dropoff home are generally not deductible.

Question 11

How do I calculate business use percentage?

Accepted Answer

Divide your annual business miles by total annual miles. For example: 15,000 business miles / 20,000 total miles = 75% business use. This percentage applies to all actual expenses to determine the deductible portion.

Question 12

Can I deduct mileage for medical appointments?

Accepted Answer

Yes, the 2025 medical mileage rate is 21 cents per mile. Medical mileage is deductible on Schedule A if you itemize and your total medical expenses exceed 7.5% of adjusted gross income. This includes trips to doctors, hospitals, and pharmacies.

Mileage Deduction Calculator 2025

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