The IRS has announced the standard mileage rates for business, medical, and moving expenses incurred in May 2023. The rates are used to calculate the deductible costs of operating an automobile for business, medical, or moving purposes. The IRS has also provided the maximum standard mileage rate for charitable organizations.
May 2023 Business Mileage Rate
The IRS standard mileage rate for business use in May 2023 is 56 cents per mile. This rate applies to any business use of a car, van, pickup truck, or panel truck. This includes driving for business purposes such as sales calls, client meetings, and business-related errands. It also applies to the use of a car for a job-related move.
May 2023 Medical Mileage Rate
The IRS standard mileage rate for medical use in May 2023 is 17 cents per mile. This rate applies to any medical-related use of a car, van, pickup truck, or panel truck. This includes driving for medical purposes such as doctor’s appointments, hospital visits, and physical therapy sessions. It also applies to the use of a car for a medical-related move.
May 2023 Moving Mileage Rate
The IRS standard mileage rate for moving use in May 2023 is 17 cents per mile. This rate applies to any moving-related use of a car, van, pickup truck, or panel truck. This includes driving for moving purposes such as relocating to a new home or job, moving belongings to a new address, and traveling for a new job. It also applies to the use of a car for a move.
May 2023 Charitable Mileage Rate
The IRS standard mileage rate for charitable organizations in May 2023 is 14 cents per mile. This rate applies to any use of a car, van, pickup truck, or panel truck for activities related to charitable organizations. This includes driving for charitable purposes such as volunteering and delivering goods or services to organizations in need. It also applies to the use of a car for transporting goods for charitable organizations.
Maximum Mileage Reimbursement
The IRS maximum mileage reimbursement rate for May 2023 is 56 cents per mile. This rate applies to any use of a car, van, pickup truck, or panel truck for business, medical, or moving purposes. This includes driving for any of the above purposes, as well as the use of a car for a job-related move or transporting goods for charitable organizations.
Filing Mileage Reimbursement
In order to receive reimbursement for mileage expenses, the taxpayer must keep accurate records of their miles driven. This includes the date of travel, the miles driven, the purpose of the travel, the start and end points of the travel, and any other relevant information. The taxpayer must also provide proof of payment, such as a receipt or invoice, when filing for mileage reimbursement.
Calculating Mileage Reimbursement
In order to calculate the amount of mileage reimbursement due, taxpayers must multiply the total number of miles driven by the applicable rate. For example, if a taxpayer drove 400 miles for business purposes in May 2023, they would multiply 400 by 56 cents, resulting in a reimbursement of $224.00.
Conclusion
The IRS has announced the standard mileage rates for May 2023 for business, medical, and moving expenses. The rates are used to calculate the deductible costs of operating an automobile for these purposes. The IRS has also provided the maximum standard mileage rate for charitable organizations. In order to receive reimbursement for mileage expenses, taxpayers must keep accurate records of their miles driven and provide proof of payment when filing for mileage reimbursement. The amount of mileage reimbursement due is calculated by multiplying the total number of miles driven by the applicable rate.