The IRS has provided more information concerning updates to moving, mileage and travel expenses. The changes are the result of the Tax Cuts and Jobs Act, passed in December of 2017.
The standard mileage deduction for 2018 will be 54.5 cents per mile, as previously announced. This is up from 53.5 cents per mile in 2017, and is based on an annual study of fixed and variable costs of operating an automobile. However, the TCJA suspended the miscellaneous itemized deduction of unreimbursed employee business expenses from 2018 to 2025, including moving expenses. The new notice provided by the IRS explains that taxpayers will not be able to take the standard mileage deduction for these expenses, except in certain limited circumstances. Unless you are active duty military personnel who is moving pursuant to a military order, you are likely out of luck and will not receive the 17 cent per mile deduction you would have received in 2017.
In summary, the updated rates appear as follows:
- 54.5 cents for business miles traveled, up from 53.5 in 2017
- 18 cents per mile driven for medical purposes, up from 17 cents in 2017
- 14 cents per mile driven for a charitable organization, which remains unchanged from the prior year
Please contact LGA if you have any questions about your specific situation concerning the changes to the deductions mentioned above.
Written by Daniel Leary.