Mileage Rate 2016 Calculator

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2016 IRS Mileage Rate Calculator

Calculate your tax deductions using the official 2016 standard mileage rates.

Total 2016 Deduction: $0.00

Business Deduction: $0.00

Medical/Moving Deduction: $0.00

Charity Deduction: $0.00

function calculate2016Mileage() { var busMiles = parseFloat(document.getElementById('businessMiles').value) || 0; var medMiles = parseFloat(document.getElementById('medicalMiles').value) || 0; var charMiles = parseFloat(document.getElementById('charityMiles').value) || 0; // 2016 Rates: // Business: 54 cents // Medical/Moving: 19 cents // Charity: 14 cents var busDeduction = busMiles * 0.54; var medDeduction = medMiles * 0.19; var charDeduction = charMiles * 0.14; var total = busDeduction + medDeduction + charDeduction; document.getElementById('busBreakdown').innerHTML = '$' + busDeduction.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('medBreakdown').innerHTML = '$' + medDeduction.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('charBreakdown').innerHTML = '$' + charDeduction.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('totalDeductionDisplay').innerHTML = '$' + total.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('mileageResult').style.display = 'block'; }

Understanding the 2016 Standard Mileage Rates

The Internal Revenue Service (IRS) issued the optional standard mileage rates for 2016 used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. For the 2016 tax year, the rates saw a slight decrease from the 2015 levels due to lower fuel costs during that period.

Category 2016 Rate (per mile)
Business Use 54 cents
Medical or Moving 19 cents
Charitable Service 14 cents

How to Use the 2016 Calculator

To determine your total deduction, follow these steps:

  • Business Miles: Enter the total number of miles driven for work purposes, excluding your daily commute.
  • Medical/Moving Miles: Include miles driven for medical appointments or qualified moving expenses (for moves occurring in 2016).
  • Charity Miles: Enter miles driven in service of a qualified charitable organization.

Important Rules for 2016 Deductions

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. However, if you choose the standard mileage rate, you must generally opt into it in the first year the car is available for business use. In later years, you can then choose between the standard mileage rate or actual expenses.

Note: You cannot use the business standard mileage rate for more than four vehicles used simultaneously. Additionally, the charitable rate is set by statute and remains unchanged at 14 cents.

Example Calculation

If an independent contractor drove 10,000 business miles in 2016:

10,000 miles x $0.54 = $5,400.00 deduction

If that same person also drove 500 miles for medical purposes and 200 miles for a local food bank:

  • Medical: 500 x $0.19 = $95.00
  • Charity: 200 x $0.14 = $28.00
  • Total 2016 Deduction: $5,523.00

Record-Keeping Requirements

To claim these deductions on your tax return, the IRS requires you to maintain a written log. Your records should include the date of the trip, the destination, the business purpose, and the odometer readings (start and end) for each trip.

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