Mileage Reimbursement Rate Calculator 2017

Calculate your deductible business mileage expenses using the official IRS rates for 2017.

What is the 2017 Mileage Reimbursement Rate?

The 2017 mileage reimbursement rate refers to the standard rate set by the Internal Revenue Service (IRS) for taxpayers who use their personal vehicles for business purposes. This rate is designed to cover the costs associated with operating a vehicle for work, including depreciation, insurance, maintenance, repairs, gas, and oil. For the 2017 tax year, the IRS established specific rates for different categories of vehicle use. Understanding and accurately calculating these rates is crucial for maximizing tax deductions and ensuring proper reimbursement from employers.

This calculator specifically uses the 2017 IRS mileage rates. It's important to note that tax laws and rates can change annually, so always ensure you are using the correct year's figures. The primary rate is for general business use, while other rates apply to specific situations like medical travel or charitable work.

Who should use this calculator?

• Employees who drive their personal vehicles for work and are reimbursed by their employer.
• Self-employed individuals and independent contractors who use their personal vehicles for business and want to deduct these expenses on their tax returns.
• Anyone needing to track and calculate mileage expenses for the 2017 tax year.

Common Misunderstandings:

• Confusing Years: Using the wrong year's rate (e.g., 2018 or 2022 rates for 2017 mileage) will lead to incorrect calculations.
• Oversimplification: The standard rate covers many expenses, but taxpayers cannot deduct these specific costs separately if they use the standard rate. They must choose between the standard mileage rate or deducting actual car expenses (gas, oil, repairs, insurance, etc.).
• Unit Confusion: While the rate is in cents per mile, the final reimbursement is typically in dollars. Ensure accurate conversion.

2017 Mileage Reimbursement Rate Formula and Explanation

The calculation for mileage reimbursement is straightforward. The IRS provides a rate per mile for different types of vehicle usage. This rate is multiplied by the number of miles driven for that specific purpose to determine the deductible amount or reimbursement.

The basic formula is:

Reimbursement = Miles Driven × Rate Per Mile

For the 2017 tax year, the primary IRS mileage rates were:

IRS Mileage Rates – 2017

Note: These rates are applicable for the 2017 tax year. Always verify with the latest IRS guidelines.

Purpose	Rate (Cents per Mile)	Rate (Dollars per Mile)	Notes
Business Use	53.5¢	$0.535	For operating a car in furtherance of your trade or business.
Medical/Moving Expenses	19¢	$0.19	For medical care or qualified moving expenses (subject to limitations).
Charitable Use	14¢	$0.14	For volunteer driving for a qualified charitable organization. This rate is fixed by statute.

Variables Explained:

• Miles Driven: The total number of miles a taxpayer drove their personal vehicle for a specific purpose during the 2017 tax year.
• Rate Per Mile: The IRS-determined amount (in cents or dollars) allowed for each business, medical/moving, or charitable mile driven.

Practical Examples of 2017 Mileage Reimbursement

Example 1: Business Travel

Sarah is a sales representative who uses her personal car for client visits. In 2017, she drove 5,000 miles for business purposes. She wants to calculate her potential reimbursement using the standard business mileage rate.

• Inputs:
• Business Miles Driven: 5,000 miles
• Rate Type: Standard Business Rate
• 2017 Business Rate: 53.5 cents per mile ($0.535/mile)

• Calculation:
• Reimbursement = 5,000 miles × $0.535/mile
• Reimbursement = $2,675

• Results:
• Total Reimbursement: $2,675
• Tax Deductible Amount: $2,675

Sarah can claim up to $2,675 as a deduction or receive this amount as reimbursement from her employer.

Example 2: Medical Travel

Mark had several out-of-town medical appointments for his child in 2017. He drove a total of 800 miles for these appointments. He wants to know the deductible amount for this travel.

• Inputs:
• Business Miles Driven (for medical): 800 miles
• Rate Type: Medical/Moving Rate
• 2017 Medical Rate: 19 cents per mile ($0.19/mile)

• Calculation:
• Reimbursement = 800 miles × $0.19/mile
• Reimbursement = $152

• Results:
• Total Reimbursement: $152
• Tax Deductible Amount: $152

Mark can deduct $152 for his child's medical travel expenses for the 2017 tax year, provided these expenses meet IRS criteria for deductibility.

How to Use This 2017 Mileage Reimbursement Calculator

1. Enter Business Miles Driven: Input the total number of miles you drove for business purposes specifically during the 2017 calendar year.
2. Select Rate Type: Choose the appropriate rate from the dropdown menu based on why you drove the miles:
   • Standard Mileage Rate: Use this for general business travel, client meetings, visiting work sites, etc.
   • Medical/Moving Rate: Use this if the miles were driven specifically for qualified medical appointments or for qualified moving expenses in 2017.
   • Charitable Rate: Use this for volunteer driving for a qualified charitable organization.
3. Calculate: Click the "Calculate Reimbursement" button.
4. Review Results: The calculator will display:
   • The total business miles entered.
   • The selected rate per mile.
   • The total reimbursement amount calculated in dollars.
   • The tax-deductible amount.
5. Interpret: The results show the maximum amount you can claim as a deduction or seek reimbursement for, based on the 2017 IRS rates and your recorded mileage.
6. Reset: Click "Reset" to clear all fields and start over.
7. Copy Results: Click "Copy Results" to copy the displayed reimbursement figures to your clipboard for easy record-keeping or reporting.

Important Note: For the standard mileage rate, you cannot deduct actual vehicle expenses (like gas, oil, repairs, insurance, etc.) in addition to using this rate. You must choose one method. For medical and moving mileage, the rate is generally applied on top of other potential deductions, but specific IRS rules apply.

Key Factors That Affect 2017 Mileage Reimbursement

1. Total Miles Driven: The most significant factor. More business miles directly equate to a higher potential reimbursement or deduction. Accurate record-keeping is essential.
2. Purpose of Travel: The IRS specifies different rates for business, medical/moving, and charitable purposes. Using the incorrect rate will miscalculate the deductible amount.
3. Year of Travel: This calculator is specific to 2017. Mileage rates vary year by year. Using rates from other years will result in incorrect figures.
4. Record-Keeping: To claim mileage deductions, the IRS requires detailed records, including the date of the trip, miles driven, destination, and business purpose. Without these, deductions can be disallowed.
5. Method Choice (Standard vs. Actual Expenses): For business miles, taxpayers must choose between the standard mileage rate or deducting actual expenses. The standard rate is simpler, while actual expenses might yield a larger deduction in some high-cost vehicle scenarios, but require meticulous receipts for gas, repairs, insurance, etc.
6. Vehicle Type: While the standard rate applies to most 4-wheeled vehicles (cars, vans, pickups, panel trucks), the IRS sometimes adjusts rates based on vehicle type for specific programs or depreciation rules, though the primary rates remain consistent for most common uses.

Frequently Asked Questions (FAQ) – 2017 Mileage

Q1: Can I use the 2017 mileage rate for 2018 travel?

No, you must use the specific mileage rate applicable to the tax year in which the travel occurred. The 2017 rate is only valid for mileage driven between January 1, 2017, and December 31, 2017.

Q2: What is the difference between the business rate and the medical/moving rate for 2017?

The business rate (53.5 cents/mile) covers general costs of operating a vehicle for work-related activities. The medical/moving rate (19 cents/mile) is specifically for miles driven to receive medical care or for qualified moving expenses during that year. The medical/moving rate is generally lower.

Q3: Do I need receipts if I use the standard mileage rate?

While you don't need receipts for gas, oil, or repairs if using the standard rate, you MUST keep a mileage log. This log should detail the date, miles driven, destination, and business purpose for each trip. You also need to know your total mileage for the year.

Q4: Can I deduct parking fees and tolls in addition to the standard mileage rate?

Yes. Parking fees and tolls incurred for business travel can be deducted separately, even when using the standard mileage rate. These are not included in the 53.5 cents per mile.

Q5: What if I used my car for both business and personal use in 2017?

You can only claim reimbursement or deduct mileage specifically driven for business, medical, moving, or charitable purposes. Personal miles (e.g., commuting from home to your regular workplace, errands for personal reasons) are not deductible.

Q6: My employer paid me less than the IRS rate in 2017. Can I deduct the difference?

Yes. If your employer reimbursed you at a rate lower than the applicable IRS rate for business miles, you may be able to deduct the difference as an unreimbursed employee expense, subject to certain limitations and tax law changes.

Q7: How do I calculate reimbursement for charitable driving in 2017?

The 2017 rate for charitable driving was fixed at 14 cents per mile ($0.14/mile). Simply multiply the miles driven for a qualified charitable organization by $0.14 to find your deductible amount.

Q8: Does the standard mileage rate include depreciation?

Yes, the standard mileage rate is intended to cover all operating and capital costs of running a vehicle, including depreciation, insurance, maintenance, fuel, and registration fees. If you use the standard mileage rate, you generally cannot claim a separate depreciation deduction for your car.