IRS announces mid-year change in mileage reimbursement rates

In Announcement 2011-40, the Internal Revenue Service (IRS) announced an increase in the optional standard mileage rates for the final six months of 2011. The mileage reimbursement rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through December 31, 2011.  This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011.

Deductions for automobile usage involving medical and moving deductions were increased to 23.5 cents per mile.  The mileage rate that applies to the deduction for charitable contributions is fixed under § 170(i) of the Internal Revenue Code at 14 cents per mile, and so was not changed.

The IRS made this special adjustment for the final months of 2011 in recognition of recent gasoline price increases. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.

As before, taxpayers have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Permanent link to this article:


    • Barb Choquette on July 26, 2011 at 5:14 PM
    • Reply

    That is really attention-grabbing, You’re a very skilled blogger. I’ve joined your rss feed and stay up for looking for more of your excellent post. Also, I’ve shared your website in my social networks!

    • wedding photographer on August 1, 2011 at 1:53 PM
    • Reply

    Thanks for that awesome posting. It saved MUCH time 🙂

    • straight through on August 22, 2011 at 1:42 AM
    • Reply

    Now that is some excellent writing.

Leave a Reply

Your email address will not be published.