Tax Guru-Ker$tetter Letter
Wednesday, November 07, 2001
2002 IRS Mileage Rates
IRS has announced its official standard rates for deducting vehicle expenses on 2002 income tax returns. This trend of IRS releasing this info ahead of time makes it much easier for companies that base their employee reimbursements on the official IRS rates to make the appropriate adjustments. Of course, there are still some employers that make up their own reimbursement rates. I have some clients who are paid 18 cents per business mile. These people are allowed to deduct the under-reimbursed portion on their 1040s (using Form 2106).
As always, the offical rates for 2002 depend on what the miles are for. The wise folks at IRS long ago determined that vehicles use more or less fuel based on the purpose of a trip.
Business Trips will be 36.5 cents per mile (vs 34.5 cents for 2001)
Medical Related Trips will be 13 cents per mile (vs 12 cents for 2001)
Miles Driven While Moving will be 13 cents each (vs 12 cents for 2001)
Trips On Behalf of Charities will be 14 cents per mile (vs 14 cents for 2001)