The IRS has posted the standard mileage rates for 2018. New rate for transportation and reimbursements is 54.5 cents. That is up a penny from 53.5 cents in 2017.
According to IRS comments in Notice 2018-03:
The standard mileage rate for transportation or travel expenses is 54.5 cents per mile for all miles of business use (business standard mileage rate). See section 4 of Rev. Proc. 2010-51.
The standard mileage rate is 14 cents per mile for use of an automobile in rendering gratuitous services to a charitable organization under § 170. See section 5 of Rev. Proc. 2010-51.
The standard mileage rate is 18 cents per mile for use of an automobile (1) for medical care described in § 213, or (2) as part of a move for which the expenses are deductible under § 217. See section 5 of Rev. Proc. 2010-51.
Standard rates for the last few years:
- Standard IRS mileage rates for 2017
- Standard mileage rates for 2016
- Standard mileage rates for 2015
- Standard mileage rates for 2014
- Standard mileage rates for 2011 – longer explanation
As usual, Bill Cleary gave me the first tip of the new rate, before I saw any news reports. By now, you may have seen various mentions of the new rates.
Are these rates that could be considered for a non-profit organization?
Do non-profits recieve reimbursements for the government for the reimbursements they provide staff?
Hi Cynthia:
Not for profit organizations may use whatever rates they wish for mileage reimbursements. Any reimbursements up to the federal rates would be non-taxable assuming there is appropriate documentation. Reimbursements above those rates would be taxable income.
The only reimbursements from the federal government would be if reimbursements were incurred for activities under a federal grant assuming the grant allowed mileage reimbursements and again assuming appropriate documentation.
Jim
can EMPLOYEES be reimbursed at the standard business rate, vs VOLUNTEERS reimbursed at the charitable rate?
Hi Charles:
That is the concept. Volunteers may be reimbursed for miles driven up to the federal charitable rate without creating taxable income. If the reimbursement is more than the congressionally set rate, the excess is taxable income. Employees may be reimbursed up to the federal business rate. For one of many citations regarding this point, consider Volunteer mileage reimbursement, an article from Independent Sector. (Update: Comments in italics are an update for clarity.)