1. What is Mileage Reimbursement?

Mileage reimbursement is compensation paid to employees for using their personal vehicles for work-related travel. It covers vehicle expenses like fuel, maintenance, and depreciation.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Distance — Miles traveled for work purposes
• Rate Per Mile — Current reimbursement rate (often set by employer or IRS)

3. Standard Mileage Rates

2023 IRS Rates: The standard mileage rate for business use is $0.655 per mile (as of 2023). Many organizations use this rate unless they have their own policy.

4. Using the Calculator

Instructions: Enter the total miles driven for work and the reimbursement rate per mile. The default rate is set to the 2023 IRS business rate.

5. Frequently Asked Questions (FAQ)

Q1: What counts as work-related mileage?
A: Travel between work locations, client visits, business errands, and required travel. Commuting from home to regular workplace typically doesn't count.

Q2: How often should I submit mileage?
A: Most companies require monthly submissions with detailed logs including dates, destinations, purposes, and odometer readings.

Q3: Can I claim mileage if I'm self-employed?
A: Yes, self-employed individuals can deduct business mileage on their tax returns using the same calculation method.

Q4: What if my company pays a different rate than IRS?
A: Companies can set their own rates. Amounts above IRS rate may be taxable income. Amounts below mean you might deduct the difference.

Q5: How should I track mileage?
A: Use a mileage logbook, mobile app, or your vehicle's trip odometer. Record immediately after each trip for accuracy.