IRS Sets Standard Mileage Rate

The Internal Revenue Service and Treasury Department have announced the standard mileage rate for 2010. Effective immediately, the standard mileage rate for all qualifying business miles driven is 50 cents. This is a decrease of 5 cents from last year’s rate.

Remember that mileage reimbursements must be made under the church’s “accountable reimbursement plan.” Be careful to reimburse at the new, lower rate as excess payments for mileage either must be returned to the church or reported as income.

The rate for computing deductible medical or moving expenses in 2010 was set at 16½ cents per mile; a decrease of 7½ cents.

The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.

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