IRS Releases 2019 Standard Mileage Rates

The Internal Revenue Service (IRS) released the 2019 standard mileage rates. Beginning January 1, 2019, the standard mileage rates for the use of a car (vans, pickups or panel trucks) will be: 58 cents per mile for ministry or business miles driven, up from 54.5 cents for 2018 20 cents per mile driven for medical, up from…

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IRS Announces 2017 Mileage Rate for Churches

2017 Standard Mileage Reimbursement Rates   The Internal Revenue Service has issued its 2017 optional standard mileage rates. Effective January 1st, 2017, the IRS standard rate will be 53.5 cents per mile driven for ministry or business purposes (The new rate is down from 54 cents per mile for 2016 because of lower gas prices. )….

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Clergy Mileage Reimbursement or Auto Allowance

Mileage Reimbursement/Auto Allowance A church and its pastor(s) can work together to maximize the reimbursement of professional expenses, which are typically paid out–of–pocket with after–tax wages by the pastor. These expenses can include mileage, cost of periodicals, books, professional supplies, conferences, etc. Using methods that meet the IRS requirement for “Accountable Reimbursement” plans, a pastor can…

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Can I Estimate Ministry Miles on My Return?

The IRS requires that you have adequate records backing up your mileage deduction. If you’re audited, the IRS examiner will ask to see your records or log.  If you don’t have exact, reliable records, the IRS will ordinarily disallow your entire mileage deduction. This is true even if it’s clear that you did in fact drive…

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Is Clergy Auto Allowance taxable?

An auto or gas allowance is a cash payment given to you each pay period by the church for the purpose of covering your automobile ministry expenses. When you receive an auto allowance, it is considered taxable “compensation” and included with your wages reported in Box 1 on Form W-2. Federal tax law allows you…

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2016 Standard Mileage Rates

Optional standard mileage rates for ministry and business use of a vehicle will go down in 2016, the IRS announced on Thursday (Notice 2016-1). For ministry and business use of a car, van, pickup truck, or panel truck, the rate for 2016 will be 54 cents per mile, compared with 57.5 cents in 2015. Driving…

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What if I Stop at the Hospital During My Commute?

Question: If I drive my personal car from my home to the hospital and then to the church office, what part of that drive is eligible for the standard mileage rates? My church says that the total miles of the trip should be added and then the usual commute miles from home to office should…

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When Are Vehicle Registration Fees Deductible?

According to the IRS, vehicle registration fees are classified as a personal property tax—that is, a state or local tax charged on personal property, based on the value of the personal property (as opposed to weight or other characteristics) and assessed on a yearly basis (even if it’s collected more or less than once per…

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IRS Announces 2015 Mileage Rates

The Internal Revenue Service has announced the 2015 optional standard mileage rates used to calculate the deductible costs of operating an automobile for ministry, business, charitable, medical or moving purposes. The ministry/business rate is increasing from the 2014 rate, while the medical and moving mileage rates are decreasing from last year. The charitable rate is…

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Ministry Mileage – Best Practices

Almost all clergy use their personal vehicle for ministry purposes. And there’s nothing wrong with that, as long as they keep proper records. If you are chosen for an audit, you can bet the auditor will take a good look at the vehicle mileage. This is sometimes the red flag that caused the audit. Every…

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