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IRS Standard Mileage Rate 2023 Calculator, Deduction, Medical Expenses

Last updated: Jan 1st, 2024 at 8:30pm Edited by: Infotechies

IRS Standard Mileage Rate: United States of America has fixed the Internal standard mileage rate for people in America. The taxpayers of America use the tax deduction amount for utilizing the business automobiles. For the year 2023, the Internal Revenue Service has fixed the standard mileage rate of 14 cents per mile for charity, 22 cents per mile for medical and moving objectives, and 65.5 cents per mile for business. 

The Standard Mileage Rate definition is- ‘A standard mileage rate is the dollar amount per mile inflicted by the Internal Revenue Service (IRS) when calculating the deductible expenses for business use of vehicles. The standard mileage rate is also known as deductible mileage or per diem.’

The tax deduction depends on how one uses his/her vehicle. Suppose a person works as a contractor or is self-employed tax deduction amount varies and can subtract the expense of the uses of his/her vehicle for business objectives. To deduct or subtract the standard mileage rate, one must fulfill one specific requirement and need to count his/her taxes.

IRS Mileage Rate Standard Deduction 2023

Below, we have given the complete list of the Internal Revenue Service Standard Mileage Rate Deduction 2023.

Standard Mileage Rate Deduction ForStandard Mileage Rate 2023
For Medical and Moving Objectives22 cents per mile
For Charity Purposes14 cents per mile
For Business Purposes65.5 cents per mile

IRS Mileage Rate Standard Calculator 2023

For Charitable Activities:-

  • If a person has used their vehicle for some charitable activities and volunteering, can easily subtract the mileage rate, including tolls and parking charges.
  • One can subtract oil and gas expenses if he/she does not want to subtract the mileage.
  • Excluded from subtracted are- Depreciation, Maintenance & Repair Expenses, Insurance or Tyres Expenses, and Registration Fees.

For Medical and Moving Objectives:-

The reasons for the deduction of the mileage, if one has used the vehicle for some medical reasons, are;

  • The vehicle must be used for driving to the Hospital or any other medical clinic, etc., or to a Doctor.
  • The vehicle must be used for driving a person or a child who needs medical supervision.
  • The vehicle must be used to see a mentally unwell person.
  • A person can subtract oil, gas, or any either out-of-pocket expenses if he/she does not want to subtract the mileage.

Only the members of the military who is on active duty are eligible for the mileage rate deduction for moving purposes.

For Business Purposes:-

The mileage rate deduction for businesses in two ways:-

1. Actual Expenses: If a person does not want to subtract the mileage, they can subtract expenses, including;

  • Licenses
  • Tolls
  • Repairs
  • Gas and oil
  • Depreciation
  • Garage rent
  • Insurance
  • Lease payments
  • Parking fees
  • Tires
  • Registration fees

2. Standard Mileage Deduction:

  • Multiplicating the number of business miles by the Internal Revenue Service Standard Mileage is the most simple and uncomplicated way to calculate the cost of driving. Although, one must keep his/her business-related mileage record.

IRS Standard Medical Expenses 2023

The list of Medical expenses that can be deducted is as follows:

  • Hospital and nursing home care.
  • Addiction programs, including quitting smoking.
  • Insulin and prescription drugs.
  • Dentures, reading or prescription eyeglasses, contacts, hearing aids, crutches, wheelchairs, and service animals.
  • Insurance premiums for medical care or long-term care insurance if your employer does not pay them, and you pay out-of-pocket after taxes.
  • Payments to doctors, dentists, surgeons, chiropractors, psychiatrists, psychologists, and other medical practitioners.
  • Acupuncture
  • Weight-loss programs for doctor-diagnosed diseases, including obesity.
  • Admission and transportation to medical conferences about diseases you, your spouse, or your dependents have.
  • Transportation costs to and from medical care.

The list of Medical expenses that cannot be deducted is as follows:

  • Over-the-counter medicines
  • Vacations
  • Nicotine gum and patches that don’t require a prescription
  • Funeral or burial expenses
  • Most cosmetic surgery
  • Toothpaste, toiletries, and cosmetics.

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