IRS Mileage Reimbursement Guide

irs mileage reimbursement guide

What Is Mileage Reimbursement?

Mileage reimbursement is when an employer offers employees reimbursement if they use their driving methods on behalf of the business. If you’re a businessperson, independent contractor, freelancer, rideshare driver, and/or a sole proprietor, it is mandatory for you to have appropriate and helpful information when we talk about mileage calculations. Please find the section you need in the sidebar to the right.

Every year, people within these categories track, report, and submit tax returns. For this, one must understand the various changes that are coming year to year. Along with this, it is important for you to ask the right questions to your accounting professional or CPA when tax time is rolling around. Making use of IRS-compliant mileage reimbursement logs by the organizations is also very important, especially for those job responsibilities which require a vehicle.

triplog best mileage reimbursement software for companies

TripLog, the #1 Mileage Reimbursement Solution

At TripLog, we have designed an information hub that will help answer some pressing questions in regard to mileage reimbursements:

  • What are the differences between mileage rate reimbursements and income?
  • Should the reimbursements be provided to the employees? If so, how should they be done?
  • How should I track and calculate my mileage?
  • Should a mileage tracker app be used?
  • How do I know about the current mileage reimbursement rates?
  • How do I determine the current mileage reimbursement rates?
  • Are the federal mileage reimbursement rates the same for any given activity?
  • What are the specific requirements for tracking, reporting, and calculating mileage rates?
  • What is the need for a mileage log in the first place?

Tracking mileage for your business, and making sure to follow the proper IRS regulations, can save you money come tax season. It can also help substantiate the use of company vehicles by employees to avoid tax deductions, and can allow you to take care of reimbursements as businesses expenses.

We have tailor-made this resource for businesspeople, employers, employees, and those who are self-employed. We believe it will be very useful to help you find all the information for your mileage logs, reimbursements, and expense-tracking needs. If you have any further questions related to mileage rate reimbursements, please don’t hesitate to contact us!

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Mileage Reimbursement Savings Calculator

Using outdated manual mileage logs can cost businesses thousands of dollars per year in lost time and incorrect reimbursements. See how much TripLog can help you save!

Number of drivers

Average miles daily per person​

Number of trips daily

Cents-per-mile

Annual mileage reimbursement costs based on the numbers you provided.

Annual Mileage Reimbursement

50 mi/day x 100 drivers x $0.54 (5 days x 50 wks)

$675,000

This is the inline help tip! You can explain to your users what this section of your web app is about.

According to research, on average employees inflate the mileage by 25% when self reported.

Estimated Reimbursement Savings

25% x Annual Mileage Reimbursement

$168,750

People on average spend 2 minutes on manually recording trips.

Manual Entry Hours

2 mins x 10 trips/day x 100 drivers (5 days x 50 wks)

8,334 hr

Taking national average $25 hourly rate.

Estimated Labor Savings

Avg. $25/hr x Manual Entry Hours

$208,334

Your Company

could save

(Labor Savings + Reimbursement Savings) / Number of Drivers

$4,167

per driver