Church leaders can track and report mileage for proper reimbursement.
Correction: An earlier version of this article has been changed to reflect accurate information.
The Internal Revenue Service has announced the new standard mileage rates for 2019. Starting on January 1, 2019, the standard mileage rates for the use of a car, van, pickup, or panel truck will be:
- 58 cents for every mile of business travel driven, up 3.5 cents from the 2018 rate
- 20 cents per mile driven for medical or moving purposes, up 2 cents from the 2018 rate
- 14 cents per mile driven in service of charitable organizations
Church employees who drive their personal vehicles for church-related business (visitations, special events, etc.) can be reimbursed by the church, if they properly track their business miles. Since unreimbursed employee business expenses are currently not deductible, employees can no longer calculate a mileage deduction on their annual tax returns. Current law allows for a reinstatement of the deduction for unreimbursed employee business expenses in the year 2026.
For more on reimbursements of transportation expenses and other key tax changes that affect you and your ministry, pre-order the Church & Clergy Tax Guide today.