Today TaxMama hears from Angela from Elk Grove, CA who demands to know “What rate is my employer required to pay mileage reimbursement to his employees?”
Actually, Angela,
He’s not. There is no law that I know of requiring him to pay mileage at all.
That’s negotiated between you and your boss. Or part of the company’s policy.
Not the answer you expected, is it? So don’t go throwing IRS rates at him and demand that they pay you that amount.
If they pay you less than IRS’s maximum rates, you may take a deduction for the mileage on your tax returns using Form 2106 – the Employee Business Expense form.
I’ll put a link to IRS’s rates for the last several years. https://www.smbiz.com/sbrl003.html#smr
As it happens, the rates just went up on September 1st to 40.5 cents a mile. The rate was 37.5 cents for the earlier part of this year.
As to your employer they may pay you anything they darn well please. And if you don’t like it, you can either ask them to provide you with a vehicle, or you can refuse to drive, or you can get a different job with a more generous employer. Or, you can ask nicely and see if they will raise the amount they pay you.
And remember, you’ll find answers to lots of job related and other tax information, free. Where? At TaxMama.com
- Ask TaxMama :: Where taxes are fun and answers are free
- Small Business Taxes & Management :: Standard Mileage Rates for 1997–2005
- IRS Form 2106 :: Employee Business Expenses
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