IRS: Mileage reimbursements lower in 2010 - South Florida Business Journal:

Cheaper gas prices mean less reimbursement for motorists who use their vehicles for business.

On Thursday, the Internal Revenue Service issued its 2010 optional standard mileage rates.

Here’s how it breaks down:

  • 50 cents per mile for business miles driven, down from 55 cents in 2009.
  • 16.5 cents per mile driven for medical or moving purposes, down from 24 cents.
  • 14 cents per mile driven in service of charitable organizations, no change.

To give you an idea of how the rate fluctuates, the business mileage rate was 50.5 cents in the first half of 2008 and 58.5 cents in the second half. The medical and moving rate was 19 cents in the first half and 27 cents in the second half.

The new rates for business, medical and moving purposes are slightly lower than last year’s, reflecting “generally lower transportation costs compared to a year ago,” the IRS said in a news release.

The IRS notes that taxpayers have the option of calculating the actual costs of using their vehicle, rather than using the standard mileage rates.