New Federal milage reimbursment

  1. just wanted to let you know federal irs rate is 40.5 cents/mile.

    my health system is recomending homecare pay the full rate and doing so starting 1/1/05.
    paid from first patient to last patient or start office to last patient.

    all due to gas and wear n tear on car costs.
    Last edit by NRSKarenRN on Jan 19, '05
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  2. 8 Comments

  3. by   Traveler
    I had no idea that the rate was that high! In my experience, very few hh agencies pay the federal rate. I get 36 cents/mile now and think that's pretty good.....my last hh job paid 26 cents/mile (and that is what they are STILL paying) It would be nice if hh reimbursement matched the federal rate.
  4. by   stbernardclub
    thanks for the info...I'll be passing that on tomorrow
  5. by   NRSKarenRN
    Very interesting being part of a large health system...yet we are freestanding homecare agency, not hospital based.

    Reimbursement was .24c mile at start of 2004. About July when gas thru the roof, increased to .28c mile as way to retain staff. Since 2 hospital from a different health system bought two years ago, much work throughout health system to get everyone's policies the same.

    So if the Admin team and departments that travel alot are reimbured at IRS rate, why not home health was the question. Course are reimburment rates are in the toliet for managed care and we provide about $150,000.00/yr free charitable care. Corporate management degreed all to be rembursed at IRS as policy effective 1/1/05. So hanging onto corporate coattails nurses, therapists and aides getting .12c/mile reimbursement raise.

    A nice unexpected win...and retention stratagy too.
  6. by   renerian
    Thanks Karen your always on the ball!

    renerian
  7. by   akcarmean
    If you keep track of your miles and the amount of miles that you do get paid for; at the end of the year when your taxes are done what ever mile you were not paid for could be turned in on your taxes I do believe. But don't quote me for sure not a tax person.


    Angie
  8. by   NRSKarenRN
    Quote from akcarmean
    If you keep track of your miles and the amount of miles that you do get paid for; at the end of the year when your taxes are done what ever mile you were not paid for could be turned in on your taxes I do believe. But don't quote me for sure not a tax person.


    Angie
    You are correct.
  9. by   renerian
    I have always done this and here is how it is documented. Mileage book with a place to place mileage not just the daily mileage. Pain in the arse but worth it.

    renerian
  10. by   Traveler
    Mileage for work is tax deductable, but it doesn't come out to a whole lot. It is taken only if you itemize deductions. If you are paid 30 cents a mile for work and drove 10k miles for work, you subtract the federal rate from what you are paid and multiply it by the number of miles you drove. Of course it only subtracts money off of your income which therefore reduces your taxes (albeit very little). We would all do much better if employers just reimbursed the full rate. Where I used to work and the rate was very low, every time I asked about when the rate was going to be increased I would get the same response: "You can take it off of your taxes so it's the same." It's NOT the same, but that is what they try to make us believe.

    Ann

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