Starting Jan. 1, Uncle Sam is slashing the mileage reimbursement on tax returns for motorists who use their personal vehicles for business, medical and charitable purposes.
The Internal Revenue Service today issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, the standard mileage rates for automobiles driven for business to 50 cents from 55 cents.
The rate for medical or moving purposes drops to 16.5 cents from 24 cents.
For vehicles driven in service of charitable organizations, the reimbursement stays at 14 cents per mile
The IRS said the new rates reflect generally lower transportation costs compared to a year ago.
The standard mileage rate for all three categories are based on an annual study by Runzheimer International of the fixed and variable costs of operating an automobile, the tax collector said.
