What does your company pay for mileage?

In My Humble Opinion
1

I get $0.345 per mile, which is what we have been paid for as long as I can remember. With gas prices what they are, seems it’s time for a boost.

2

I can’t remember exactly, but I think my company is at $0.367.

3

The IRS sets the standard reimbursement rate, which went to 40.5 cents in 2005.

40.5 cents per mile 01/01/005 to present
37.5 cents per mile 01/01/04 - 12/31/04
36 cents per mile 01/01/03 - 12/31/03
36.5 cents per mile 01/01/02 - 12/31/02
34.5 cents per mile 01/01/01 - 12/31/01
32.5 cents per mile 01/01/00 - 12/31/00
31 cents per mile 04/01/99 - 12/31/99
32.5 cents per mile 04/01/98 - 03/31/99

Perhaps your company is unaware that the rate hasn’t been 34.5 cents for 4 years. You should tell them. Although I’m pretty sure they are not legally obligated to reimburse you the IRS rate, or any rate. But if they aren’t reimbursing you the IRS rate, I believe you can deduct the remainder from your taxes - which you can only do if you itemize. More than likely, they never realized it changed or never changed the reimbursement instructions.

4

This is interesting - this publication http://www.smallbusinessnotes.com/fedgovernment/irs/463/standardmileage.html seems to say that you can deduct the entire standard mileage rate even if you get reimbursed for the whole amount. Maybe I’m not understanding it right. I had thought you could only deduct if your company didn’t reimburse you; or if the company reimbursed at less than the IRS standard. Hmmm . . . .

5

I understand that you take the deduction regardless of your reimbursements, then count the reimbursements as income. To wit:

You travel 10 miles on business and your company (client/whomever) reimburses you $4.05 for the trip. You mark down an expense of $4.05, income of $4.05, for a net of 0, and your taxes are not affected. If you file a schedule SE, the IRS would much appreciate if you reported both the income and the expense, even if they total 0.

You travel 10 miles on business and your company pays a flat rate of $5.00 for any trip you take. You mark down an expense of $4.05, income of $5.00, and you now owe taxes on your profit of 95 cents.

You travel 20 miles on business and your company pays a flat rate of $5.00 for any trip you take. You mark down an expense of $9.10, income of $5.00, and you can claim the $4.10 “loss” as a deduction on your taxes.

This is the way I do it for reimbursements I get for officiating football games (we get full mileage on “out of town” games, but the “in town” games pay a flat $5 in mileage – and “in town” for me can mean a round trip of anywhere from 4 to 75 miles), so I hope I’ve been advised correctly.

6

My company reimburses us at the IRS stardard rate which, as missbunny has already posted, is $0.405/mile.

7

I work for a Crown Corporation (Government run company) in BC Canada, and our rate went up to $0.44KM from $0.40KM.

But to my knowledge we can’t claim any tax breaks on it.

MtM

8

My company pays $.34 cents a mile. I’m not complaining though, since I’m driving a Jeep Grand Cherokee that the company gave me. In addition, they out-and-out bought* cars for most of the salesman, so they shouldn’t be complaining either (but I bet most are.)

Peace - DESK

Yes, as in here’s your keys, here’s the title

9

Mine pays 38.6 cents/mile, as far as I know.