What do you know? Geithner, or one of his minions, must have stepped out of the ivory tower and into the real world … the one you and I live in … and discovered that gasoline prices are shooting through the roof. As a result, the IRS upped the standard mileage rate used to deduct the cost of business-related driving to 55.5 cents from 51 cents.
The higher amount will only apply for miles you drive in July through December. But still, I’ll take a higher deduction anyway I can get it.
Also the mileage deduction for driving to the doctor and other medically-related purposes went to 23.5 cents from 19 cents.
The amount you can deduct for driving related to charitable work has been stuck at 14 cents per mile for years. Strange when you consider the cries for wealth redistribution and the calls to help the less fortunate coming out of Washington these days.
You can read the complete IRS announcement here.