Is Your P3 Mileage Rate Incorrect? Check the Federal Rate and Save Money!

[Intrepid_Chef]

So after spending literally HOURS updating my deductions in P3 (and still not done by a long shot yet) I noticed the mileage rate was 48.5.

I thought I read somewhere that the federal rate was actually 50.5?

I realize that's only 2 cents ... but when multiplied by 1,211 miles and counting ... that's almost $25.

Do I need to fix it? Or just alert my accountant when I hand her the form?

 

[lockhartkitchen]

You are correct. 50.5 cents in 2008. It has also gone up to 55 cents for 2009 now. Is your version of P3 updated? I'm not at my own computer, I'm using my son's, so I can't check to see what amount mine is listing.

 

[Intrepid_Chef]

I'm honestly not sure ... I had to re-install P-3 ... called tech support and asked if I needed to update it and they gave me a blanket statement that everything was fine.

Most of my expenses are flat rate anyway (postage and such) so it's not that big of a deal.

 

[BethCooks4U]

I don't pay any attention to what it says in P3 about the rate. The correct rates are in the tax program (or your tax guy will know). The P3 numbers are just there to give you an idea. I can see where it would be a problem though if you do it by hand but you can just go to the tax website to check the numbers.

 

[Chefstover2]

I thought mileage was 58.5??? Or was that just for a couple of months in the fall when the gas was so high?

 

[tlag1986]

So far it is still 58.5. I know cause I asked when I took my taxes in.

 

[priscilla]

Mileage rate was two different values for 2008. Your tax program or forms will tell you what rate for when.Robin

 

[candiejayne]

It was actually .505 for the first half of the year and then .585 for the second half of the year. I used H&R Block Tax Cut online and it asked me my milage for these dates and then my mileage for the next set of dates. I guess as long as you have your totals for the months, you won't need to fix it in P3 unless you really want to. I think it was July 1 that it changed, but you'd have to verify it. I'm sure you could call a local tax refund place and just ask the mileage rate and the dates for them.

 

[Intrepid_Chef]

WOW ... I am doing better than I thought!

 

[erinb]

So far it is still 58.5. I know cause I asked when I took my taxes in.

IRS Announces 2009 Standard Mileage Rates

IR-2008-131, Nov. 24, 2008

WASHINGTON — The Internal Revenue Service today issued the 2009 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2009, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

55 cents per mile for business miles driven
24 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations

 

[Intrepid_Chef]

That's for tax year 2009. Some of us are now compiling tax records for 2008.

I think I'll just let my accountant sort it out.

 

[jrstephens]

The program I use ask for the miles and then calculates it for me, so, I just have to have the distance.

 

[erinb]

All of this can be looked up on irs.gov. I also posted 2009's current rate a few posts up in a response to it currently being .585 because it has dropped for this year to .55


July 1 - December 31, 2008
Business 58.5
Charitable 14
Medical and moving 27
IR-2008-82

January 1 - June 30, 2008
Business 50.5
Charitable 14
Medical and moving 19
IR-2007-192