The standard mileage deduction is a simplified way to calculate the cost of operating your vehicle for business, medical, or charitable purposes. Instead of itemizing all your car expenses (like gas, oil, repairs, insurance, depreciation), you multiply the total number of miles driven for a specific purpose by a standard rate set by the IRS.
Here's a basic breakdown:
- Track Your Mileage: Carefully record the mileage for each trip you take for business, medical, or charitable purposes.
- Determine the Rate: The IRS sets different rates for each purpose. For 2024, the rate is:
- Business: 67 cents per mile
- Medical: 21 cents per mile
- Charitable: 14 cents per mile
- Calculate Deduction: Multiply the total miles driven for each purpose by the corresponding rate. The result is your deduction.