1. What is Mileage Reimbursement?

Mileage reimbursement is compensation provided to employees or individuals for using their personal vehicles for business purposes. The standard IRS rate for 2025 is $0.67 per mile.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Miles \) — Distance traveled for business purposes
• \( Rate \) — Reimbursement rate per mile (typically IRS standard rate)

Explanation: This calculation provides the total amount to be reimbursed for vehicle expenses based on distance traveled.

3. Importance of Mileage Tracking

Details: Accurate mileage tracking ensures proper reimbursement and is essential for tax deductions for business-related vehicle use.

4. Using the Calculator

Tips: Enter total miles traveled and the reimbursement rate (default is 2025 IRS rate of $0.67/mile). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the standard IRS mileage rate for 2025?
A: The standard rate is $0.67 per mile for business use of a personal vehicle.

Q2: Can I use a different rate than the IRS standard?
A: Yes, organizations may set their own rates, but the IRS rate is commonly used as a benchmark.

Q3: What expenses does mileage reimbursement cover?
A: It covers all vehicle operating costs including gas, maintenance, insurance, and depreciation.

Q4: How should I document my mileage?
A: Keep a log with dates, destinations, purposes, and odometer readings for each trip.

Q5: Is mileage reimbursement taxable?
A: Payments at or below the IRS rate are generally non-taxable. Amounts above may be taxable income.