The standard mileage rate for federal income taxes is rising next year for business use, even though gas prices have gone down.
The IRS issued its 2015 optional standard mileage rates. Beginning Jan. 1, the standard mileage rates for the use of a car, van, pickup or panel truck will be:
- 57.5 cents per mile for business miles (an increase from 56 cents in 2014)
- 23 cents per mile for medical or moving reasons (a decrease of half a cent from 2014)
- 14 cents per mile driven in service of charitable organizations
The rates go into effect for the 2015 calendar year, making them applicable for deductions on 2015 tax returns – the ones U.S. taxpayers file in 2016. The 2014 rates apply for tax returns submitted early next year.
At the same time the IRS released the higher per-mile rate, a separate government agency, the U.S. Department of Energy, released its predictions for the price of gasoline next year. It estimates that gas prices will likely average $2.60 a gallon next year – the lowest full-year average since 2009.
Source: "IRS Announces 2015 Standard Mileage Rates," Forbes.com (Dec. 10, 2014)
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