IRS Announces 2010 Standard Mileage Reimbursement Rates
Changes in Reimbursement Rates for 2010
On December 3, the IRS announced the 2010 standard mileage reimbursement rates. These rates set the standard mileage reimbursement rates for 2010 and go into effect on January 1, 2010. What is changing for 2010?
2010 IRS Standard Mileage Reimbursement Rate For Business Travelers Drops 5 Cents Per Mile
The 2009 standard mileage reimbursement rate for business travelers was set at 55 cents per mile. On January 1, 2010, the rate will drop to 50 cents per mile. The reduction in the business rate was not unexpected as gas prices have remained below $3 per gallon for quite some time. Business travelers always have the option of claiming actual costs. However, based on past experience, the standard business rate is often more than enough to cover gas and wear and tear on one's private vehicle.
2010 IRS Standard Mileage Reimbursement Rate for Medical and Moving Drops Significantly
For those individuals who plan to claim mileage for medical or moving related travel, they should be aware that the new rate for 2010 is just 16.5 cents per mile, down from 24 cents per mile in 2009, 7.5 cents per mile less. This change is significant to me personally because my spouse and I elect to defer money into a Flexible Spending Account (FSA). We live in a rural county and medical care, particularly specialist care, is just not available. To obtain routine dental and specialist care, we must travel at least 35-40 miles in any direction to see our providers. The drop in reimbursement may significantly impact rural Americans such as myself who have no choice but to drive an hour to see their providers. I have been waiting for several weeks for the IRS to release this information as we have not yet set our FSA amount for 2010. The lower mileage reimbursement rate for medical reasons definitely impacts our election for 2010.
2010 Mileage Reimbursement Rate for Travel Related to Charity Is Unchanged
As I previously reported last year, the mileage reimbursement rate for charitable travel is set by Congress and is not set by the IRS. At present, the reimbursement rate for travel related to charitable works is just 14 cents per mile.
Sources:
http://www.irs.gov/newsroom/article/0,,id=216048,00.html
2009 IRS Standard Mileage Reimbursement Rates: http://www.associatedcontent.com/article/1252729/2009_irs_standard_mileage_reimbursement.html
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5 Comments
Post a CommentGood to know. Th decrease in milage reimbursemnet for medical reasons is quite unfortunate.
For 2009's rates - still good for a few more weeks - please see here: http://www.associatedcontent.com/article/1252729/2009_irs_standard_mileage_reimbursement.html
Yes, good info. Too bad about the drops.
All of this ties in to the rates of inflation, which is also why those of us receiving retired military pay aren't getting a raise this year. I suppose I should be happy that we aren't getting a cut.
Timely information thank you.