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Current Section: Driving Articles
| It is Tax Time So Let's Review Deductions and Credits for Driving |
| Friday, 08 February 2008 | |
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As tax filing season approaches, we thought it worthwhile to cover a few IRS tax changes and new mileage rates that might affect your tax filings. First, there have been some changes in the valuation of the Hybrid tax credits since many manufacturers have reached the 60,000 unit limits specified in the Energy Policy Act of 2005. As always, you can only receive the credit if you purchase the vehicle. If you lease the vehicle then the leasing company may take the credit. So, if you lease a hybrid ensure you negotiate the price down. You can go to this link and check qualifying hybrids tax credits. Also, it won't help for your 2007 tax year, but the IRS has raised the 2008 tax year Business Mileage deduction to $0.505 (50.5 cents) per mile driven. The previous rate for 2007 was 48.5 cents. For medical or moving purposes, the mileage rate actually drops from $0.20 to $0.19 for the 2008 tax year. The mileage rate for charitable organizational driving has not changed since 2007 and remains at $0.14. Ensure you contact a qualified tax professional to go over changes in the tax laws that affect your filings and deductions before you file.     |