The IRS has issued its 2019 guidance on the standard mileage rates used to calculate the deductible expenses for operating personal vehicles for business, charitable, medical, or moving purposes.
On January 1st, 2019, the standard mileage rates for the use of a car (vans, pickups or panel trucks) will be:
- 58 cents per mile for business miles driven, up from 54.5 cents for 2018
- 20 cents per mile driven for medical or moving purposes, up from 18 cents for 2018
- 14 cents per mile driven in service of charitable organizations, unchanged from 2018
For nonprofits this means that volunteers can deduct the IRS-approved amount towards every mile they drive in relation to your nonprofit or charity as a donation.
Can Employees Deduct Their Mileage?
It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, except members of the Armed Forces on active duty moving under orders to a permanent change of station. However, it is the policy of many employers to reimburse these expenses in accordance with federal and state laws.
For more details see Notice-2019-02.
How your nonprofit can keep track of your mileage
Keeping track of receipts and accurate mileage logs can be difficult. Not many at your organization will keep track of every single time they get in a car for services related specifically towards the organization. Luckily, there are several inexpensive options to help alleviate this issue and ensure that you are staying in compliance with Federal law. Our recent favorite is MileIQ – a location enabled, smartphone application that tracks every mile driven. At the end of the day swipe left or right to distinguish between business and personal travel. With plans starting at just under $5 a month, any nonprofit can bring ease of mind to mileage reimbursement.
Need help implementing a mileage reimbursement program? Contact us today.
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