Tax Tip: Will Low Gas Prices Impact Your Tax Return?
This applies to those who deduct work-related mileage costs.
— -- For those who deduct work-related mileage costs, the good news is there's no change in your tax filings yet. But that's about to change.
"For 2015, the business mileage deduction is 57.5 cents per mile and for 2016 it goes down to 54 cents a mile," said Charles Stein, a certified public accountant in New York.
"[That's] because gas prices are less and this mileage rate is a composite of gasoline prices, insurance, depreciation on a car, wear and tear, repairs and so on," he explained.
If you moved, you can deduct the miles as long as the relocation was for work.
"You have to move more than 35 miles from the job to a new job. Yes, the mileage would be deductible along with your moving expenses," Stein said.
Moving mileage and mileage for medical use drops from 23 cents a mile to 19 cents a mile in 2016. If you use your vehicle for charity, the mileage deductions will remain the same at 14 cents a mile.
You can find more information at IRS.gov.
