The holiday season is here, and with it comes a “to do” list families don’t normally see during the other 11 months of the year. As a result, you may find yourself supporting the family by adjusting your schedule to run a few more errands. If this happens, the family should reimburse you for the miles you drive at a rate of 55.5 cents per mile. This covers the cost of gas PLUS general wear and tear on your vehicle.
The good news is the IRS doesn’t consider mileage reimbursement to be a part of your compensation, so neither you nor the family will have to pay taxes on those dollars. Just remember to keep track of all the miles you drive while “on the clock” so the family can accurately reimburse you. Remember though, this only applies to when you drive your car as part of your job duties. It does not apply to the miles you drive to and from the family’s home each day as part of your commute.
While I have you, here’s another heads up: The IRS recently announced that the mileage reimbursement rate will increase in 2013 to 56.5 cents per mile – an increase of 1 cent per mile (hey, every little bit helps, right?). If the family you work for is a client of Breedlove & Associates and has mileage reimbursement already included in your standard pay, we’ll automatically make that small rate adjustment starting in January.
If you or the family you for has any questions about mileage reimbursement, please give us a call at 888-273-3356. We’re here to help.
Have a wonderful holiday season!