The Internal Revenue Service today issued the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

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

The rate for business miles driven is unchanged from the mid-year adjustment that became effective back on July 1, 2011. However, the medical and moving rate has been reduced by 0.5 cents per mile.

If the actual costs of using your vehicle is greater than the standard mileage rates, you can deduct your actual costs.

If you need additional tax help regarding deductions you are entitled to, call us at IRS Angel.