The mileage reimbursement 2021 calculator quickly provides the deduction you can claim on your taxes as per the mileage rates published by IRS. Under Internal Revenue Code, at 26 U.S.C. § 162, certain types of taxpayers are generally entitled to deduct either the actual expense amount or an amount computed using the standard mileage rate, whichever is greater.
Who can claim mileage reimbursement deduction?
Well in the past, even employees were eligible for claiming mileage expense incurred on an official tour that was not reimbursed by the employer. But, Tax Cuts & Jobs Act (TCJA) in 2017 barred employees from claiming the mileage deduction on their taxes.Now the mileage reimbursement tax deduction is available to the following persons only
- Reserve members of the U.S. Armed Forces,
- Qualified performing artists,
- Fee-based state and local government officials
- Individuals with physical or mental disabilities who pay for attendant care at their place of employment.
- A self-employed individual who uses his/her car for business.
- An individual who needed travel for medical or dental care.
- An individual who who incurred mileage volunteering for a nonprofit
Mileage Reimbursement 2021 Calculator
IRS Mileage Reimbursement Rates for 2021
IRS Notice 2021-02 PDF, contains the optional 2021 standard mileage rates for the use of a car (also vans, pickups or panel trucks) from January 1, 2021, will be:
- 56 cents per mile driven for business use
- 16 cents per mile driven for medical, or moving purposes for qualified active-duty members of the Armed Forces
- 14 cents per mile driven in service of charitable organizations,