Sachin Walls
Employees can receive mileage reimbursement from their employer when travelling for work. This includes travelling to and from the airport. The Internal Revenue Service (IRS) publishes an official mileage rate each year, which for 2025 is 70 cents per mile. However, employers are not obliged to use this rate and can reimburse employees at a higher or lower rate. It is important to note that reimbursement should not be counted as part of employees' income. Employees must provide consistent mileage records to their employers to be reimbursed, including the date, destination, purpose, and total mileage driven. Self-employed and independent contractors can deduct business mileage expenses from their taxes, while employees can deduct unreimbursed travel expenses if they are a member of the National Guard or military reserve.
Can I expense mileage to the airport?
| Characteristics | Values |
|---|---|
| Mileage to and from the airport | Can be expensed if it is for business travel |
| Mileage from home to the airport | Cannot be expensed if working from home |
| Mileage from the office to the airport | Can be expensed |
| Mileage for self-employed individuals | Can be deducted on Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship) |
| Mileage reimbursement rate for business-related driving in 2025 | 70 cents per mile |
| Mileage reimbursement rate for business-related driving in 2024 | 67 cents per mile |
| Mileage reimbursement rate for medical and moving miles in 2025 | 21 cents per mile |
| Mileage reimbursement rate for medical and moving miles in 2024 | 21 cents per mile |
| Mileage reimbursement rate for miles in the service of charitable organizations in 2025 | 14 cents per mile |
| Mileage reimbursement rate for miles in the service of charitable organizations in 2024 | 14 cents per mile |
| Mileage reimbursement conditions | Reimbursement payments must be lower per mile than the IRS mileage rate per mile |
| Mileage reimbursement records | Must include the date, destination, purpose, and total mileage driven |
| Mileage reimbursement methods | Rate-per-mile, car allowances, fixed and variable rates |
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What You'll Learn
Mileage reimbursement from employers
Employers have the flexibility to set their own mileage reimbursement policies, which can vary based on local and regional factors like gasoline prices and the cost of living. When crafting a reimbursement policy, it is crucial to consider basic driving standards, such as ensuring that employees have valid licenses, their vehicles meet safety requirements, and they have the necessary insurance coverage.
The Internal Revenue Service (IRS) provides a standard mileage reimbursement rate that organizations can adopt or use as a reference. For 2024, the standard mileage rate for business use was $0.67 per mile, and in 2025, it increased to $0.70 per mile. Employers can choose to reimburse employees based on the actual expenses incurred during a trip or use a specific rate for each mile driven, typically less than $1 per mile. It is worth noting that reimbursement rates cover all expenditures associated with driving for business, including gas, insurance, and wear and tear on the vehicle.
To ensure tax-free reimbursement, employees must comply with the IRS rules of accountable plans. Reimbursements should be equal to the incurred expenses, as any excess amount will be treated as taxable income. Additionally, employees should maintain proper records of their business trips, including dates, purposes, and mileage.
It is important to note that daily commutes to and from a regular workplace are generally not eligible for reimbursement. However, travel between different offices within the same city or travel to attend meetings outside of the employee's regular office or home is typically reimbursable.
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Deducting travel expenses
If you're self-employed, you can deduct vehicle expenses when you drive your personal car for business purposes. This includes driving to see a client, to a store to pick up supplies, or to a conference in another state. You can choose to deduct either the standard mileage allowance or the actual cost of gas, oil, and other expenses. The standard mileage allowance for tax year 2024 is 67 cents per mile (increasing to 70 cents per mile for 2025).
If you use your car for business purposes, you may be able to deduct car expenses. You can use one of two methods to calculate your deductible expenses: the standard mileage rate or actual car expenses. If you qualify for both methods, you may want to calculate your deduction both ways to see which gives you a larger deduction. The cost of using your car as an employee, whether measured using actual expenses or the standard mileage rate, will no longer be allowed to be claimed as an unreimbursed employee travel expense.
If you have to travel as part of being self-employed, you can deduct your mileage, lodging, and a portion of business meals during your business trip. As of tax year 2024, you can deduct 50% of the cost of meals for business activities. If you travel to see a client during the day but return home in the evening, you can only deduct the business miles you drove to the meeting.
If you travel outside the USA for more than a week but spend less than 75% of your time doing business, you can still deduct travel costs proportional to how much time you spend working during the trip. For example, if you go on an eight-day international trip and spend at least six days conducting business, you can deduct the entire cost of the trip as a business expense. However, if you only spend four days out of the eight conducting business, you would only be able to deduct 50% of the cost of your travel expenses.
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Mileage allowance
The mileage allowance provides a simplified way to deduct vehicle-related expenses. You can either use the IRS's standard rate or deduct actual costs, but you need to keep accurate records to ensure the deductions are legitimate. It is important to note that personal mileage, such as commuting to work, is not deductible.
If you use your car for business purposes, you may be able to deduct car expenses. There are two methods to calculate your deductible expenses: the standard mileage rate and actual car expenses. If you qualify for both methods, you may want to calculate your deduction using both ways to see which gives you a larger deduction.
The standard mileage rate for 2024 is $0.67 per mile for the cost of operating your car for business use. If you use the standard mileage rate for a year, you cannot deduct your actual car expenses for that year, including depreciation, lease payments, maintenance and repairs, gasoline, oil, insurance, or vehicle registration fees.
If you choose to deduct actual expenses, it is important to maintain detailed records, including fuel, repairs, insurance, and maintenance receipts. The IRS bases its mileage allowance on an annual study of car-related costs, which include fixed and variable expenses. The rate for business travel incorporates fixed costs (like depreciation) and variable costs (such as fuel).
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Mileage logs
Firstly, it is essential to distinguish between the two methods of accounting for mileage deductions: the standard mileage deduction and the actual expense deduction. The standard mileage deduction requires tracking the total number of qualified miles driven during the tax year. This includes recording the odometer reading at the beginning and end of the tax year, as well as any additional readings if a used vehicle is purchased mid-year. For 2025, the standard mileage deduction rates are 70 cents per mile for business use, 21 cents per mile for medical purposes, and 14 cents per mile for charitable services.
On the other hand, the actual expense deduction involves claiming deductions for vehicle expenses incurred while performing qualified activities. This includes expenses such as depreciation, lease payments, registration expenses, oil, gas, repairs, tires, tolls, parking, and insurance. To claim the actual expense deduction, it is necessary to retain all receipts and relevant documentation, ensuring that each document includes the date, amount, and description of the service or product.
Regardless of the chosen deduction method, maintaining a comprehensive mileage log is crucial. The IRS requires that mileage logs be timely, with entries made at or near the time of the trip. While the format of the log is flexible, it should include information such as the time, miles, place, and purpose of each work trip. Additionally, it is recommended to keep mileage and vehicle-related documentation for at least three years in case of an audit.
To simplify the process of tracking and recording mileage, various apps, such as Driversnote, are available for both iOS and Android users. These apps can automatically track and log mileage, increasing the likelihood of having adequate reports for IRS purposes.
It is worth noting that the information provided here is general in nature and does not constitute legal, tax, or accounting advice. For specific guidance on mileage logs and expense reimbursement, it is advisable to consult with a qualified professional or refer to official IRS publications.
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IRS mileage rates
The Internal Revenue Service (IRS) sets standard mileage rates that taxpayers can use to deduct mileage expenses at tax time. The standard mileage rates for 2025 are: 70 cents per mile for self-employed and business purposes; 14 cents per mile for charities; 21 cents per mile for medical purposes; and 21 cents per mile for moving purposes for the military only.
The standard mileage rate for the cost of operating a car for business use in 2024 was 67 cents per mile. The 2024 rate revision saw the business mileage rate increase by 1.5 cents. The IRS updates the mileage rates every year in December to reflect shifts in vehicle operating expenses. These yearly changes are designed to ensure that reimbursements or deductions reflect the current costs associated with using a vehicle. Vehicle operating costs cover elements like fuel prices, maintenance, and depreciation.
The IRS mileage rate is not obligatory, and employers can choose to reimburse employees at a different rate per mile. However, if you use your car for business, charity, medical, or moving purposes, you may be able to take a deduction based on the mileage used for that purpose. If you use actual expenses to figure out your deduction for a leased car, there are rules that affect the amount of your lease payments that you can deduct.
To use the standard IRS mileage deduction method, you must own or lease the car. It is important to maintain records that include the date of the trip, the reason for the trip, and the mileage. There are many ways to track your mileage, from simply keeping a pen and paper in the glove compartment to using a variety of tools available on your phone.
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Frequently asked questions
Yes, if you are travelling for work, you can expense your mileage to and from the airport. This also includes any parking expenses.
You can calculate the amount to expense using the standard mileage rate or the actual expenses method. The standard mileage rate for 2024 is 55.5 cents per mile and 67 cents per mile for 2025.
It is important to maintain records of your trip, including the date, destination, purpose, and total mileage driven. If you are claiming based on actual expenses, you will need to keep receipts for vehicle-related expenses.
