2021 IRS Mileage Rates Amounts for the Standard Deduction

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Are you wondering what the mileage reimbursement rates are for 2021?

The 2021 IRS mileage rate amounts are:
Business: 56 (down from 57.5 cents from 2020)
Charitable: 14 (down from 17 cents from 2020)
Medical & moving: 16 (down from 20 cents from 2020)

Please review this article for a chart of all the standard IRS mileage rate amounts going back to 2009: IRS Mileage Rate Amounts (Updated Yearly)

Example Calculation for Standard IRS Mileage Rate Tax Deduction Calculation

An example of how to calculate your tax deduction amount using the standard mileage rate tax deduction method with the 2021 amounts.

Sarah drove about 100 miles a day for business each workday of 2021. Also, Sarah kept a detailed mileage log of her drives, as per the IRS requirements. At the end of the year, her mileage log showed that she drove a total of 21,950 miles for work.

How do you calculate Sarah’s end of year (for 2021) mileage expense tax deduction?

You multiply the total number of miles that Sarah drove for work by the standard mileage rate tax deduction per mile for 2021. The standard mileage rate tax deduction for miles driven for business for 2021 is 56 cents per mile.

Sarah’s Mileage Expense Tax Deduction

$0.56 x 25,000 miles driven = $14,000

Sarah’s tax-deductible amount from his mileage expenses alone was larger than the individual standard deduction for 2021, which is $14,000. Therefore, it paid off for Sarah to keep a mileage log as by doing so she was able to maximize her tax return.

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