We’re coming to the close of 2011 and people are starting to ask what the IRS mileage rate will be for 2012. The reimbursement rate had an unusual midyear change in 2011 to adjust for rising gas prices and increased by 4.5 cents to the current 55.5 cents. The IRS recently announced that the Standard Mileage Rate for 2012 will remain the same at 55.5 cents per mile. This standard mileage rate is used for calculating deductible costs associated with business automobile expenses as well as charitable, moving or medical miles.
Employers reimburse business related mileage for employees using their vehicles for company related business. The 2012 mileage rates beginning on January 1 will be:
- 14 cents per mile for services to charitable organizations.
- 23 cents per mile for medical or moving – this is a 0.5 cent decrease.
- 55.5 cents per mile for business related miles.
Mileage reimbursement can be applied to cars, vans, panel or pickup trucks. Organizations that reimburse employee mileage should require employees to keep accurate records and submit request for reimbursement on a regular basis especially for 2011 reimbursement. Anyone who has unreimbursed mileage for 2011 should make note of the dates for the two different mileage rates.
January 1 – June 30, 2011
- 14¢ per mile to serve a charitable organization.
- 19¢ per mile for moving or medical purposes.
- 51¢ per mile for business purposes.
July 1 – December 31, 2011
- 14¢ per mile to serve a charitable organization.
- 23.5¢ per mile for moving or medical.
- 55.5¢ per mile for business.
