Maximize Your Tax Savings: Understanding Mileage Taxes for 2008 | 1099 Info

[ChefPaulaB]

On CC under tax info: 1099 info, there is a spot that talks about mileage for 2008:
"Standard mileage rate. For 2008, the standard mileage
rate for the cost of operating your car, van, pickup, or panel
truck for business miles is:
•50.5 cents per mile for the period January 1 through
June 30, and
•58.5 cents per mile for the period July 1 through
December 31.
For more information, see Car and Truck Expenses in
chapter 8."

So, if this is true, then why does the mileage thing on our Income/Expense Transactions on PP3 say that it is 0.4850? Can we change that to reflect the correct rate?

 

[chefann]

You can. It doesn't necessarily update automatically. If you've already entered mileage entries, you need to go into each of those and apply the correct rate. To change the default rate, start a new expense transaction, and click the "edit categories" link. When the list pops up, edit the mileage entry to have the current deduction per mile.

 

[ChefJWarren]

I use H&R Block online and it just asks for number of miles 1/1-6/30 and number 7/1-12/31. They figure it for you. I entered my miles into P3, but let H&R Block figure the actual number.

 

[ChefPaulaB]

Thank you! I had went through and entered all of my mileage before I read that, so now I get to change the whole year! Whoohoo! Oh well, at least it'll be worth it in the end, more deductions!

 

[pcchefjane]

So what is the current rate? Didn't it change again January 1st?

 

[ChefPaulaB]

Not sure if it changed Jan 1st or not, but as of July 1st it was .585

 

[chefann]

You can check the rate at the IRS website: irs.gov