If you’re regularly tracking your mileage for work or tax reimbursements, you’re probably excited to learn that the U.S. federal mileage reimbursement rate has just been increased effective July 1st, 2022, to 62.5 cents per mile. Finally, a little relief from the rising costs of fuel, at least to those who can claim their mileage as a business expense or for other reasons. What types of miles or expenses can be claimed? Here are a few ways you can make sure you’re getting the most out of mileage deductions, work-related or otherwise.
Charity Miles Count
For those who drive for charity programs or nonprofits, such as community service drivers for the disabled or charity efforts such as Meals on Wheels, make sure you’re clocking your mileage. You might not get reimbursed from the charity entity directly, but it can be an itemized tax deduction when filing your yearly tax return. While charity mileage reimbursement did not increase yet this year, if charity driving is something you do often, this deduction can still add up more than you think it does, so it’s always worth keeping records of any miles driven while volunteering.
Business Trips
Unfortunately, your normal daily commute is not deductible mileage. However, if you were to make a business-related stop on your way to work, suddenly those miles are eligible to be claimed. Knowing how to schedule errands and other business trips strategically can set you up to get more out of mileage reimbursements.
More Than Just Miles
The term “mileage reimbursement” might cause you to prioritize tracking just your miles driven, but be aware of the other travel-related expenses you might be able to claim. Parking, toll fees, accommodations, and even meals can be work-related expenses eligible for reimbursement. Make sure you save all of your receipts and keep a detailed account of exactly what your costs are when you’re traveling for work, whether it’s a day trip or a weekend conference that takes you far from home for several days.
Turn In Your Mileage and Expense Reports
Your employer might not be as diligent as you are when it comes to making sure you’re being properly reimbursed for out-of-pocket expenditures including mileage. For that reason, you have to shoulder the full responsibility of making sure you are reporting your mileage and expenses in a timely manner. While it might seem like an additional expense to your employer, they should know that they can also claim these deductions with their tax returns for paying them out to you.
Conclusion
With the rising costs of fuel, and basically everything else, it’s about time some reimbursement benefits start to catch up with the increase in overall expenses. Always make sure you’re keeping thorough, accurate records of any mileage or expenses you’re intending to claim. Contact us today to learn about what expenses can be eligible and how to get the maximum benefits you deserve.
