Mileage Deductions on Income Tax

Business Use

• For 2010, the mileage rate for business use of a car was 50 cents per mile. So if you drove 100 miles on a business trip, you could claim a mileage deduction on your 2010 return for $50. The mileage rates change every year, so be sure to check the IRS website for the standard mileage rate before you file.
  
  

Charitable Mileage

• As of 2010, the charitable mileage rate was14 cents per mile. So if you drove 100 miles as a volunteer in the Boy Scouts program, you could claim a $14 tax deduction.
  
  

Medical or Moving Purposes

• As of 2010, the mileage rate for medical or moving purposes was 16.5 cents per mile, or $16.50 every 100 miles.
  
  

Why Do the Rates Vary?

• The standard mileage rates vary depending on the price of cars, inflation and probably most importantly, the price of gas. As the price of gas increases, so does the standard mileage rate. The rates also vary annually to account for inflation.
  
  

How to Claim the Mileage Deduction

• You can claim mileage deductions when you fill out your tax return (your 1040, 1040A or 1040EZ) at the end of the year. More specifically, you will claim the deduction on Schedule C to Form 1040, or Schedule C-EZ to Form 1040EZ.