2010 Mileage Reimbursement Rates

The Internal Revenue Service issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 50 cents per mile for business miles driven
• 16.5 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

The new rates for business, medical and moving purposes are slightly lower than last year’s. The mileage rates for 2010 reflect generally lower transportation costs compared to a year ago.

Mileage reimbursements reported under an accountable plan are tax-free fringe benefits to employees and are not reported on the W-2.  However, gas or car allowances must be reported on the W-2.

Encourage your volunteers to track their mileage for ministry volunteer errands and activities and claim them as a tax deduction on their tax return.   However, mileage to attend worship services should not be included as volunteer miles.

Learn more about mileage reimbursements and gas allowances in our Payroll Management course.