mileage reimbursement

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Our mileage reimbursement has changed. The company now deducts 50 miles anytime you are out on the road visiting clients. We are paid 48 cents/mile. It does not matter how many clients you are visiting or miles you have driven; they still deduct 50 miles per day from your total mileage. Say you drove 100 miles; you only get reimbursed for 50 miles. Gas has not decreased and neither has wear/tear on your vehicle. We are reimbursed for our tolls. Anyone else have similar mileage reimbursement? Thanks!

I was always reimbursed for mileage in my own car at the IRS mileage rate, but there may not be a requirement for companies to do that.

Personally, I think your company is being cheesy. But you can deduct the difference between your actual mileage and your reimbursement on your taxes per IRS rules (below).

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[h=1]2014 Standard Mileage Rates[/h]IR-2013-95, Dec. 6, 2013

WASHINGTON — The Internal Revenue Service today issued the 2014 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2014, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 56 cents per mile for business miles driven
  • 23.5 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

Thanks Grntea, I agree with you. When I did workers comp for DOL, I too was reimbursed at the current per diem rate. However, even though you can deduct from taxes, unless you are below poverty, it does not earn me anything back ($$).

It won't "earn you anything back" in terms of a check or an addition to your salary that month, but it can make a difference on the taxes you owe, and that's something. Never let that go unclaimed.

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