IRS Increases Mileage Rate

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.

This content is designed to provide accurate and authoritative information in regard to the subject matter covered. It is published with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. "From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations."

Recent Posts
Subscribe to Church, Law & Tax
Reducing the Risk

Reducing the Risk

Keep your church safe from child sexual abuse.
Starting a Food Pantry

Starting a Food Pantry

Establishing a food pantry might be an effective way to make a difference.