Car Mileage Tax Deduction for 2011, 2012

With oil prices escalating, and jobs getting more scarce, a lot of Americans are commuting more than twenty miles a day.

Well one thing you might want to keep in mind is the fact that car miles driven on the road can become a mileage tax deduction you can claim on your tax return this year.

Your vehicle operating costs must coincide with some simple regulations that will determine if you qualify or not, such as:

• Miles driven for business
• Medical travel mileage
• Moving travel mileage
• Servicing for charitable organization traveling

It will always be crucial to know how much you can deduct as you have the choice of deducting mileage, or vehicle operation costs. Not both.

The current IRS Mileage Rates are as follows:

• 51 cents per mile for business
• 14 cents per mile for charitable
• 19 cents per mile for medical
• 19 cents per mile for moving

You must document all of the mileage you plan on deducting very thoroughly. This would include the address and name of your starting and ending points in all relevant trips.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle.

In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.

For more information about car mileage tax deductions and help with calculating this year’s tax deductions, visit TurboTax Online. They offer a deduction maximizer that guarantees you the biggest refund possible.