2017 Mileage Reimbursement Rate Calculator
2017 Mileage Reimbursement Results
Mileage Reimbursement Rates for 2017
| Purpose | 2017 Rate (per mile) |
|---|---|
| Business Use | 53.5 cents |
| Medical Use | 17 cents |
| Charitable/Relocation Use | 14 cents |
Note: Commuting miles are generally not deductible or reimbursable.
Chart: 2017 Mileage Reimbursement Breakdown
What is the 2017 Mileage Reimbursement Rate?
The 2017 mileage reimbursement rate refers to the standard rates set by the Internal Revenue Service (IRS) for the tax year 2017, allowing individuals and businesses to calculate the deductible cost of using their personal vehicle for specific purposes. These rates are designed to cover the costs associated with operating a vehicle, including depreciation, insurance, maintenance, and fuel. Understanding and applying these rates correctly is crucial for accurate tax deductions and reimbursements.
Who Should Use It?
- Employees who use their personal vehicle for business-related travel and are reimbursed by their employer.
- Self-employed individuals and small business owners who use their personal vehicle for business purposes and wish to deduct related expenses on their tax returns.
- Individuals who have incurred significant mileage for medical appointments or for charitable organizations.
Common Misunderstandings
- Confusing Rates: People often mix up the rates for business, medical, and charitable/moving use. Each has a distinct rate.
- Deductible vs. Reimbursable: Not all miles driven are deductible or reimbursable. Commuting miles (travel between your home and your regular place of work) are the most common example of non-reimbursable miles.
- Record Keeping: Many assume they can estimate mileage. However, the IRS requires detailed logs of business travel, including dates, destinations, purpose, and total miles driven.
- Actual Expense vs. Standard Rate: Taxpayers can choose to deduct actual vehicle expenses (gas, repairs, insurance, depreciation) or use the standard mileage rate. For 2017, the standard mileage rate was generally more advantageous for many.
2017 Mileage Reimbursement Formula and Explanation
The core calculation for mileage reimbursement is straightforward. It involves multiplying the number of miles driven for a specific purpose by the corresponding IRS rate for that purpose in 2017.
The General Formula:
Total Reimbursement = (Business Miles × Business Rate) + (Medical Miles × Medical Rate) + (Moving/Charitable Miles × Moving/Charitable Rate)
Formula Breakdown:
Total Reimbursement: The total amount of money you can claim for reimbursement or deduct on your taxes based on your vehicle usage.
Business Miles: The number of miles driven for activities directly related to your trade or business. This includes visiting clients, traveling between work sites, and necessary business errands.
Medical Miles: The number of miles driven to and from medical providers, hospitals, or pharmacies for yourself, your spouse, or your dependents. This requires a high deductible health plan or itemizing medical expenses.
Moving/Charitable Miles: The number of miles driven for qualified moves (if you meet certain distance requirements and are in the military) or for volunteer work for a qualified charitable organization.
Commuting Miles: Miles driven between your home and your regular place of business. These are NOT reimbursable or deductible.
Variables Table:
| Variable | Meaning | Unit | 2017 Rate |
|---|---|---|---|
| Business Miles | Miles driven for business purposes | Miles | – |
| Medical Miles | Miles driven for medical purposes | Miles | – |
| Moving/Charitable Miles | Miles driven for qualified relocation or charitable work | Miles | – |
| Commuting Miles | Miles driven between home and regular workplace | Miles | – |
| Business Rate | IRS rate for business vehicle use | Cents per Mile | 53.5 |
| Medical Rate | IRS rate for medical vehicle use | Cents per Mile | 17 |
| Moving/Charitable Rate | IRS rate for qualified moving or charitable use | Cents per Mile | 14 |
Practical Examples of 2017 Mileage Reimbursement
Let's illustrate with a couple of realistic scenarios for the 2017 tax year.
Example 1: Small Business Owner
Sarah runs a small consulting business from her home office. In 2017, she drove her personal car:
- 15,000 miles for business meetings with clients.
- 750 miles for medical appointments for her child.
- 200 miles for volunteer work at a local animal shelter.
- She also commuted 3,000 miles to a temporary client site that qualified as her regular workplace for that project.
Calculation:
- Business: 15,000 miles × 53.5 cents/mile = $8,025.00
- Medical: 750 miles × 17 cents/mile = $127.50
- Charitable: 200 miles × 14 cents/mile = $28.00
- Commuting miles are not included.
Total Reimbursement/Deduction: $8,025.00 + $127.50 + $28.00 = $8,180.50
Example 2: Employee with Medical Travel
John uses his personal vehicle for work and also travels frequently to a specialist doctor for his ongoing treatment. In 2017, he drove:
- 8,000 miles for business travel (reimbursed by his employer at the business rate).
- 3,500 miles for medical appointments.
Calculation:
- Business (Reimbursement from Employer): 8,000 miles × 53.5 cents/mile = $4,280.00
- Medical (Deduction on Taxes – assuming itemizing): 3,500 miles × 17 cents/mile = $595.00
Total: John received $4,280.00 from his employer and can potentially deduct an additional $595.00 on his tax return for medical travel.
How to Use This 2017 Mileage Reimbursement Calculator
Our calculator simplifies the process of determining your potential mileage reimbursement or deduction for the 2017 tax year. Follow these steps:
- Gather Your Mileage Records: Before using the calculator, collect your logs detailing the miles driven for each category (business, medical, moving/charitable, commuting) in 2017. Accuracy is key!
- Enter Business Miles: In the "Business Miles Driven" field, input the total number of miles you used your vehicle for work-related activities.
- Enter Medical Miles: Input the total miles driven to and from medical appointments or pharmacies in the "Medical Miles Driven" field.
- Enter Moving/Charitable Miles: Enter the total miles driven for qualified relocation or charitable purposes into the "Relocation/Charitable Miles Driven" field.
- Enter Commuting Miles (Optional): While these miles are not reimbursable, entering them can help ensure your total driven miles are accounted for and helps in tracking.
- Click "Calculate": Once all relevant fields are populated, click the "Calculate" button.
- Review Results: The calculator will display your total potential reimbursement/deduction, broken down by category. It also shows the total number of reimbursable miles.
- Understand Assumptions: The calculator uses the official IRS standard mileage rates for 2017: 53.5 cents per mile for business, 17 cents per mile for medical, and 14 cents per mile for moving/charitable.
- Use "Reset" and "Copy": The "Reset" button clears all fields to their default values. The "Copy Results" button copies the primary result and its description to your clipboard for easy sharing or documentation.
Key Factors That Affect 2017 Mileage Reimbursement
Several factors influence the amount you can claim for mileage reimbursement or deduction. Understanding these is vital for maximizing your benefits and complying with IRS regulations.
- Record Keeping Accuracy: The most critical factor. The IRS requires a detailed mileage log. Without accurate records, your deduction or reimbursement can be disallowed. This log should include date, starting/ending odometer readings, total miles, destination, and business purpose.
- Vehicle Type: While the standard mileage rates apply to most passenger vehicles (cars, vans, pickups, panel trucks), the IRS may have specific rules for heavier vehicles or those used for specific purposes (like delivery trucks). For 2017, the standard rates were intended for typical personal vehicles.
- Business vs. Personal Use: Clearly differentiating between business and personal miles is paramount. Commuting miles are explicitly excluded. Personal errands, joyrides, or travel between your home and a regular place of business do not qualify.
- Employer Policies: If you are an employee seeking reimbursement from your employer, their policies might differ. Some employers may reimburse at the IRS rate, while others might offer a lower rate or have specific approval processes.
- Tax Deductibility Rules: For medical and moving/charitable expenses, deductibility often depends on whether you itemize deductions on your tax return and if your total itemized deductions exceed the standard deduction. For 2017, the medical expense deduction threshold was 10% of Adjusted Gross Income (AGI).
- Choice of Deduction Method: Taxpayers can deduct actual expenses (gas, oil, repairs, insurance, depreciation) OR use the standard mileage rate. You generally must choose one method for the year and cannot switch mid-year or between vehicle types. The standard rate simplifies calculations and often covers most costs.
- Frequency and Distance of Travel: Naturally, the more qualifying miles you drive, the higher your reimbursement or deduction. Strategic planning of business trips can optimize mileage.
Frequently Asked Questions (FAQ) – 2017 Mileage Reimbursement
-
Q1: What were the exact IRS mileage rates for 2017?
A1: For 2017, the standard mileage rate for business was 53.5 cents per mile, for medical and moving purposes it was 17 cents per mile, and for charitable organizations it was 14 cents per mile (though charitable mileage is a deduction, not a reimbursement). -
Q2: Can I claim reimbursement for commuting miles?
A2: No, commuting miles (travel between your home and your regular place of work) are generally not considered deductible or reimbursable business expenses by the IRS. -
Q3: Do I need proof for my mileage?
A3: Yes, the IRS requires detailed records, often referred to as a mileage log. This should include the date, miles driven, destination, and purpose of the trip. Our calculator helps you tally the totals, but you need separate logs for substantiation. -
Q4: What if my employer reimburses me less than the IRS rate?
A4: If your employer reimburses you at a rate less than the IRS standard mileage rate for business use, you may be able to deduct the difference as an unreimbursed employee expense on your tax return (if you itemize and meet certain criteria, though this became more difficult with tax law changes). -
Q5: Can I use the standard mileage rate and also deduct actual car expenses like gas and repairs?
A5: No, you must choose either the standard mileage rate method or the actual expense method for your vehicle each year. You cannot combine them. -
Q6: What qualifies as "business miles"?
A6: Business miles are miles driven for the convenience of your employer or for the operation of your business. This includes travel to clients, customers, meetings, and between different work locations. -
Q7: How are medical miles calculated for 2017?
A7: For 2017, you could deduct miles driven to receive medical care for yourself, your spouse, or dependents. The rate was 17 cents per mile. This deduction was subject to limitations based on your Adjusted Gross Income (AGI) if you itemized deductions. -
Q8: What if I used my car for both business and personal reasons on the same trip?
A8: You should only log and claim the miles driven for the business purpose. If a trip involved both business and personal driving, you would track the business portion separately. For example, if you drove 50 miles to a client meeting and 10 miles of that was personal side trip, you'd claim 40 business miles.