2021 Mileage Value

Since 2021 is only 2 days away, I thought you may like to know the new 2021 mileage allowance, so you can make sure your substantiation log is correct. The new rate is 56 cents per mile, which is down slightly from the 57.5 cents for 2020 (how do they decide these random amounts??).

Something to think about regarding mileage, self-employed folks can easily report and deduct their business mile value. However, for employees, you can no longer deduct on Schedule A, "unreimbursed employee expenses" such as mileage (under the TCJA). Therefore, if your employer isn't already doing so, ask them to be so kind as to reimburse you the mileage value under an expense reimbursement plan. Remember, deductible business mileage does NOT count your normal commute.

HAPPY NEW YEAR !