The Internal Revenue Service announced this morning it has increased the optional standard mileage rate that employers can use to reimburse employees who drive personal vehicles for business purposes.
The IRS increased the rate to 55.5 cents per mile for travel occurring between July 1 and December 31.
The rate was 51 cents for January 1 to June 30.
Many pastors and staff members drive their personal vehicles for church-related business, such as visitations or special events. If properly tracked, those miles can be reimbursed by churches (or pastors and staff members may be able to calculate a deduction for their annual tax returns).
Chapter 7 of the 2011 Church & Clergy Tax Guide further explains reimbursements of transportation expenses.
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