IRS standard mileage rates for 2018: Business mileage rate increases
IRS announced standard mileage rates that will apply starting from January 1, 2018. Business mileage rate used to calculate mileage deductions for Uber driver-partners, was increased by 1 cent if to compare with the 2017 rate.
The following rates will be used to calculate tax deductions for business usage of your car in 2018:
- Business mileage rate – 54.5 cents (up from 53.5 cents in 2017)
- Rate for driving with medical and moving purposes – 18 cents (up from 17 cents in 2017)
- Driving for charity organizations – 14 cents (the same as in 2017).
Standard mileage method allows to calculate the amount of tax deductions based on the total number of miles driven for business. There are some limitations to its use, for example, you’re not eligible to use standard mileage deduction if you’ve already used a depreciation method or own more than 4 vehicles. In this case, you need to use the actual expenses method. Check out our post to learn more about deducting your vehicle expenses. In addition to both methods, you can claim deduction of business related expenses.
RYDAR tracks all miles you drive for business – trips with passengers, trips you make when waiting for a ride request and trips to pick up a passenger. The app also suggests the most popular business expenses rideshare drivers have and generates detailed mileage and expenses reports ready to be filed to the IRS. Get RYDAR for iOS and Android and maximize your tax deductions!