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

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Discussion Overview

The thread discusses the accuracy of the mileage rate in the P3 software used by Pampered Chef consultants, comparing it to the federal mileage rates for various years. Participants share their experiences with updating their mileage deductions and the implications of potential discrepancies.

Discussion Character

  • Exploratory, Opinion-based, Anecdotal, Technical explanation

Main Points Raised

  • One participant mentions spending significant time updating deductions in P3 and questions the mileage rate listed.
  • Another participant confirms that the federal mileage rate was 50.5 cents in 2008 and increased to 55 cents in 2009.
  • One participant shares uncertainty about their P3 version and notes that most of their expenses are flat rate.
  • Another participant states they do not rely on the P3 mileage rate, suggesting that tax programs or accountants provide the correct rates.
  • One participant expresses confusion about whether the mileage rate was 58.5 cents for a specific period.
  • Another participant confirms that the rate is still 58.5 cents based on their recent tax experience.
  • One participant clarifies that the mileage rate varied in 2008, with different rates for different halves of the year.
  • Another participant explains that they used a tax program that calculates mileage based on inputted distances.
  • One participant mentions that all relevant information can be found on the IRS website.
  • Another participant indicates they will let their accountant handle the mileage rate discrepancies.

Areas of Agreement / Disagreement

Views differ regarding the accuracy of the mileage rate in P3 and whether it is necessary to update it, with some participants expressing confidence in their tax programs or accountants while others are uncertain.

Contextual Notes

Participants are discussing their personal experiences with mileage rates and tax deductions as Pampered Chef consultants, focusing on the implications for their business expenses.

Who May Find This Useful

Consultants who are navigating mileage deductions and using P3 software may find the shared experiences and insights relevant to their own tax preparation processes.

Intrepid_Chef
Intrepid_Chef
Silver Member
Messages
5,144
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?
 
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.
 
  • Thread starter
  • #3
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.
 
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.
 
I thought mileage was 58.5??? Or was that just for a couple of months in the fall when the gas was so high?
 
So far it is still 58.5. I know cause I asked when I took my taxes in.
 
Mileage rate was two different values for 2008. Your tax program or forms will tell you what rate for when.Robin
 
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.
 
  • Thread starter
  • #9
WOW ... I am doing better than I thought!
 
tlag1986 said:
So far it is still 58.5. I know cause I asked when I took my taxes in.
Click to expand...

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
 
  • Thread starter
  • #11
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.
 
The program I use ask for the miles and then calculates it for me, so, I just have to have the distance.
 
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
 

Frequently Asked Questions

What is the P3 Mileage Rate?

The P3 Mileage Rate refers to the reimbursement rate for mileage that Pampered Chef consultants can claim when using their personal vehicles for business-related activities. This rate is often based on the federal mileage rate set by the IRS.

How can I check if my P3 Mileage Rate is incorrect?

You can check if your P3 Mileage Rate is incorrect by comparing it to the current federal mileage rate published by the IRS. If your rate differs from the federal rate, you may be missing out on potential savings.

Where can I find the current federal mileage rate?

The current federal mileage rate can be found on the IRS website. They typically update this rate annually, so it's important to check for the most recent information to ensure your calculations are accurate.

What should I do if I find my mileage rate is incorrect?

If you find that your mileage rate is incorrect, you should adjust your mileage claims to reflect the current federal rate. This will help you maximize your deductions and save money on your taxes.

Can I retroactively claim the difference if my mileage rate was incorrect?

Yes, if you discover that your mileage rate was incorrect, you may be able to retroactively claim the difference on your tax return. It's advisable to keep accurate records of your mileage and consult with a tax professional to ensure compliance with IRS regulations.

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