IRS Mileage Rate 2011

The 2011 IRS mileage rate actually has two different sets of rates. One set of IRS mileage rates for the first six months of the year and another set for the last six months of the year.

Using online tax software will help you claim your IRS mileage allowance on your income tax return. TurboTax 2011 guarantees the biggest tax refund possible or least tax owed. TurboTax software can help you get the full tax deduction you deserve to take for your mileage for business, charitable miles, medical miles, or moving miles.

Taxpayers always have the option to take the actual costs of operating a vehicle or taking the IRS standard mileage rate. The IRS mileage rate for 2011 was 51 cents per mile from January 1st  to June 30th, and from July 1st  to December 31st  it is  55.5 cents per business mile driven.

 The IRS Mileage Rate for 2011 is:

January 1st to June 30th
51 cents for every business mile
19 cents for every medical or moving mile
14 cents for every charitable service mile

July 1st to December 31st
55.5 cents for every business mile
23.5 cents for every medical or moving mile
14 cents for every charitable service mile

Due to increases in the price of gas, the IRS has increased the standard mileage rate for the last half of the year 2011. Gas prices aren’t the only factor to consider when they calculate the IRS mileage rate. Depreciation, the cost of auto insurance and other costs are taken into consideration.

If you don’t claim vehicle depreciation, you may also deduct the cost of parking and tolls while using your vehicle for any of the standard mileage deduction purposes.

There are some rules when claiming the standard mileage rate deduction. The standard mileage rates may not be used for more than four vehicles used at the same time or for hired vehicles. The standard mileage rate must be reduced by the depreciation component which is 22 cents per mile for 2011 if you are claiming deductions for vehicle depreciation.

You do not have to use the standard IRS mileage rates because you also have the choice of calculating the costs of operating a vehicle instead. You must keep accurate records of your mileage in a journal or a mileage log. You can also use mileage tracking software that works with the GPS system in your car or your mobile phone which will keep track of the mileage for you.

IRS mileage rate 2011 (IRS article) The IRS mileage rate doesn’t have to be confusing with all of the help readily available for us to use to our advantage.
TurboTax 2011 software and mileage tracking software will make preparing your income tax return a breeze. If you’re a little old school, there’s nothing with a spiral notebook and pencil to track your mileage.