The Internal Revenue Service (IRS) has changed the optional Standard Mileage Rates for 2015.
Employers who reimburse their employees for using their own personal vehicles for charitable, medical, moving expenses and business purposes will need to begin using the new Standard Mileage Rates on January 1, 2015.
The new Standard Mileage Rates are based on an annual study that an independent contractor completes through reviewing the fixed and variable costs associated with operating an automobile. The operating costs that are considered in the study are gas, oil, maintenance, repairs, tires, insurance and the depreciation of the vehicle.
Effective January 1, 2015, the new Standard Mileage Rates are,
• 14 cents per mile driven for charitable organizations
• 23 cents per mile driven for medical or moving expense purposes
• 57.5 cents per mile driven for businesses
The rate for charitable organizations remained the same since it is set by law. The rate for medical or moving expense purposes has decreased by half a cent from 2014. The rate for businesses has increased 1 ½ cents from 2014.
The IRS published information on the Standard Mileage Rates in Notice 2014-79.
If you need any assistance with the information regarding the Standard Mileage Rates issued by the IRS, please feel free to contact our office at 951-719-1515.