IRS Lowers Mileage Rate for 2014

down arrowThe IRS mileage rate has changed for 2014. Unlike in years passed, the rate has decreased slightly. In 2013 the rate was 56.5 cents per mile and for 2014 it is 56 cents.

From the IRS website:

Beginning on Jan. 1, 2014, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 56 cents per mile for business miles driven
  • 23.5 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

Employers don’t have to reimburse employees for mileage, although it is generally good practice. The IRS rate is both a guide for employers and the rate employees can use to claim mileage deductions on their taxes when employers don’t reimburse. It is important to note that while employers don’t have to reimburse this rate exactly, if they reimburse over the rate, then employees must report that excess reimbursment as wages.

Timesheets.com makes it easy to reimburse mileage. Employers can set the mileage rate and then employees can enter their mileage as an expense. In the notes section of the entry, employees should include the odometer readings.

Online expense entry

5 thoughts on “IRS Lowers Mileage Rate for 2014

  1. Pingback: 2014 MILEAGE RATE INCOME TAX About 2014

    • If the money is being paid in 2014, I would assume it should be the 2014 rate. The IRS cares about the exchange of money, not the driving of miles. But you could check with your CPA to be sure.

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