The IRS provides standard mileage rates each year to allow taxpayers to deduct the cost of operating their vehicles for business, charitable, medical, or moving purposes. Using these rates can simplify your tax deductions. This calculator helps you estimate your potential deduction based on the 2023 IRS mileage rates.
Your Estimated Deduction:
Understanding the 2023 IRS Mileage Rates
For the 2023 tax year, the IRS set the following standard mileage rates:
Business Use: 65.5 cents per mile
Medical Use: 22 cents per mile
Charitable Use: 14 cents per mile (This rate is set by law and is not determined by the IRS)
How to Use This Calculator:
1. Business Miles Driven: Enter the total number of miles you drove during 2023 for business purposes. This includes miles driven for client meetings, travel between work locations, and necessary business errands.
2. Medical Miles Driven: Enter the total number of miles you drove during 2023 for medical purposes. This can include travel to and from doctor's appointments, hospitals, and pharmacies for yourself, your spouse, or your dependents.
3. Charitable Miles Driven: Enter the total number of miles you drove during 2023 for a qualified charitable organization. This is for volunteer work and travel directly related to the services you provide to the charity.
The calculator will then compute your estimated deduction for each category and a total estimated deduction. Remember, these are estimates, and you should consult with a tax professional or refer to official IRS publications for definitive guidance on your specific tax situation.