2009 IRS Standard Mileage Reimbursement Rates Released

Business Travelers' Rate Drops 3.5 Cents to 55 Cents Per Mile

Carly Hart
On November 25, the IRS released the standard mileage reimbursement rates for 2009. Beginning January 1, 2009, the standard mileage reimbursement rate for business travelers will drop from 58.5 cents per mile down to 55 cents per mile. As I reported last summer, the IRS raised the standard mileage reimbursement rate 8 cents to help offset the high cost of gas. The 3.5 cent drop still would leave the rate higher than originally set for 2008.

IRS standard mileage reimbursement rate for 2009 for medical and moving expenses also lower

Business travelers are not the only ones affected by the drop in the IRS standard mileage reimbursement rate schedule released. According to the IRS site, the mileage reimbursement rate for Americans who seek reimbursement for medical and/or moving related expenses will drop 3 cents from 27 cents for the remainder of 2008 to just 24 cents for 2009. This information is useful for those who are eligible to enroll in a flexible spending account (FSA) as money is deducted pre-tax and set aside for future medical expenses, including mileage for some plans. Knowing this rate allows FSA participants to better determine how much money they should plan to set aside in the coming year. For many companies and the federal government, it is "open season" where employees must select a health insurance and/or dental insurance plan for the coming year. The release of the IRS' standard mileage reimbursement rate for medical expenses is a helpful planning tool for deciding how much to have set aside in a FSA for 2009.

Charitable workers still left behind; the 2009 standard mileage reimbursement rate changes do not affect them

Those Americans who seek reimbursement for mileage related to charitable works are not affected by the new 2009 IRS standard mileage reimbursement rate schedule. Unfortunately, Congress is responsible for determining the rate of reimbursement for this group. The current mileage reimbursement rate for charity related travel is just 14 cents per mile, far below the reimbursement rate for business travelers.

Sources:

http://www.associatedcontent.com/article/839477/irs_mileage_reimbursement_rate_raised.html?cat=3

http://www.irs.gov/formspubs/article/0,,id=178004,00.html

http://www.associatedcontent.com/article/878957/insurance_open_season_tips_for_surviving.html?cat=7

Published by Carly Hart

One of AC's Top 1000 Content Producers, Carly Hart's interests include news, politics, parenting, frugal living and consumer related issues. A Featured Contributor in the Shopping and Fashion category, she...   View profile

  • FSA participants should note the medical reimbursement rate when electing how much to have set aside
  • Charitable workers are not affected by new schedule.
Check your FSA plan as expenses related to medical appointments, including tolls, can be reimbursable expenses.

11 Comments

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  • Carly Hart 12/16/2009

    The 2010 IRS Standard Mileage Rate info can be found here: http://www.associatedcontent.com/article/2456854/irs_announces_2010_standard_mileage.html

  • Carly Hart 3/11/2009

    Bill, it depends. If you have a newer car, then perhaps it could be an income stream. However, if you have an older car, piling on the miles is definitely not going to make you money... instead it will send your car to an early grave. Trust me on this one! I do expect this rate to be cut as gas prices have come down by nearly half since they announced the reimbursement rate.

  • Bill McKenna 3/11/2009

    This is interesting...figure a car gets 20mpg and cost is $1.80 per gallong..a 100 mile trip would cost: $9.00 and lets add 20% more for wear/tear/insurance/etc..$9.00x1.20=$10.80.
    At $0.55 per mile u get $55.00!! this is an income stream.

  • CC Allison 12/2/2008

    =D This is info I needed to know. Thanks!

  • Ryan Christopher DeVault 12/2/2008

    Great article! This was very informative and something I think I need to bookmark!

  • News Team 12/2/2008

    Thank you for your submission. Your article has been featured on the front page of AC.

    Please keep AC stocked with great front-page material.

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  • Sheri Fresonke Harper 12/1/2008

    Well, we wanted uhm, tax cuts, right? lol :) Sheri

  • Shanika 11/29/2008

    Good info. Now if only the post office will lower the cost of stamps. If they can raise them for gas expenses, seems they ought to be able to lower them too. Round these parts gas is $1.57.

  • Agnes Farside 11/29/2008

    Some states don't honor the federal increase either. When I worked for a state agency, they always paid a few cents less than the feds..we had to eat the rest.

  • 3lilangels 11/29/2008

    ;-);-)

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