1. What is Mileage Reimbursement?

Mileage reimbursement is compensation provided to employees or individuals for using their personal vehicles for business-related travel. The IRS sets standard mileage rates each year that organizations often use to calculate reimbursement amounts.

2. How Does the Calculator Work?

The calculator uses the standard reimbursement formula:

Where:

• \( Miles \) — Distance traveled in miles
• \( IRS\ Rate \) — Current IRS mileage rate (default 0.67 USD/mile for 2025)

Explanation: The calculation multiplies the number of miles driven by the current IRS mileage rate to determine the reimbursement amount.

3. Importance of Mileage Tracking

Details: Accurate mileage tracking ensures proper reimbursement for business travel expenses and helps with tax deductions for self-employed individuals.

4. Using the Calculator

Tips: Enter the total miles traveled and the current IRS mileage rate (default is 0.67 USD/mile for 2025). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current IRS mileage rate?
A: The 2025 rate is 0.67 USD per mile for business use. This rate is updated annually by the IRS.

Q2: Can I use a different rate than the IRS standard?
A: Yes, organizations may set their own rates, but the IRS rate is commonly used as a benchmark.

Q3: How should I track my miles?
A: Maintain a detailed log with dates, destinations, purposes, and odometer readings for each trip.

Q4: Are there different rates for different types of travel?
A: Yes, the IRS has separate rates for medical, moving, and charitable purposes which are typically lower than the business rate.

Q5: Can I claim mileage on my taxes?
A: Self-employed individuals can deduct business mileage, but employees generally cannot unless it's unreimbursed employee expenses (subject to limitations).