taxgirl ®

Gas Tops $4/Gallon, IRS Finally Ups Mileage Rate

Posted: 23 Jun 2008 07:53 PM CDT

It cost me nearly $50 to fill my tank this week - $50! And I drive a pretty fuel efficient car. Gas in my home town has hit $4.25/gallon for plain old standard gas. Yuck. Gas prices are just climbing and climbing.

At least there's a small break: the mileage rate for business miles has finally been upped for tax purposes. The mileage rate will increase by eight cents to 58.5 cents a mile for all business miles driven as of July 1, 2008.

The mileage rate for deductible medical or moving expenses will increase by eight cents to 27 cents a mile.

Sadly, the rate for volunteering at charitable organizations is set by statute and remains at a pathetic 14 cents a mile. Congress, are you reading?

(Image: Newscom)