Mileage Allowance

DEFINITION of 'Mileage Allowance'

A deduction of automobile expenses for people using their vehicles for business, charity, moving, medical or any other purpose that qualifies for a deduction.

BREAKING DOWN 'Mileage Allowance'

There are different categories of purposes for deductible automobile-expenses, each of which has a specific cent-per-mile deduction. Careful documentation of the mileage and the reason for the trip is essential for audit-proofing your taxes.

RELATED TERMS
  1. Itemized Deduction

    A deduction from a taxpayer's taxable adjusted gross income that ...
  2. Deductible

    1. The amount you have to pay out-of-pocket for expenses before ...
  3. Above The Line Deduction

    Above the line deductions are certain types of deductions that ...
  4. Schedule A

    Schedule A is a U.S. income tax form that is used by taxpayers ...
  5. IRS Publication 587: Business Use ...

    A document published by the Internal Revenue Service (IRS) that ...
  6. Standard Mileage Rate

    A set rate the IRS allows for each mile driven by the taxpayer ...
Related Articles
  1. Personal Finance

    20 Medical Expenses You Didn't Know You Could Deduct

    To lower your tax bill, be sure not to miss out on these commonly overlooked medical tax deductions.
  2. Personal Finance

    What's a Deductible?

    With insurance, a deductible is the amount of money the insured pays out-of-pocket before the insurance company pays for the loss.
  3. Financial Advisor

    How to Deduct Medical Insurance Premiums

    An overview of tax breaks for those who pay medical insurance premiums.
  4. Financial Advisor

    5 Overlooked Tax Deductions for Small Businesses

    It's easy for small business owners to miss a few tax write-offs. Here's where to find them.
  5. Financial Advisor

    Don't Miss These Tax Deductions

    Knowing the tax deductions you're entitled to can make or break your bank account. Do you know about all these insurance-related deductions?
  6. Personal Finance

    Give To Charity; Slash Your Tax Payment

    Being generous has never been more (financially) rewarding!
  7. Personal Finance

    Writing Off the Expenses of Starting Your Own Business

    Learn how to navigate the complicated rules for writing off the expenses of starting your own business. It could save you a lot of money.
  8. Financial Advisor

    Top Tax Tips to Deduct Investment Management Fees

    Investment expenses can be deducted by those who meet three main criteria. Here's what they are and how they work.
  9. Personal Finance

    7 Most Overlooked Tax Deductions

    These seven tax breaks are all too easy to overlook.
  10. Personal Finance

    Top 10 Home Business Tax Tips

    If you work for yourself, make sure you are getting the most for your tax dollars.
RELATED FAQS
  1. How is the deductible I paid for my insurance claim treated for tax purposes?

    Find out how your health insurance deductible is treated for tax purposes and under what conditions you may be able to deduct ... Read Answer >>
  2. What are the deductions taken to determine AGI (adjusted gross income)?

    Read more about the deductions taken to arrive at adjusted gross income, or AGI, including the differences between above ... Read Answer >>
  3. What are the most common business deductions and expenses for small businesses?

    Learn about some of the most common business tax deductions available to small businesses that can reduce net business expenses. Read Answer >>
  4. How do I know whether to itemize deductions or take the standard deduction?

    Taking the standard deduction is the easiest and most common method chosen by filers, but many taxpayers may wind up paying ... Read Answer >>
  5. Which is better for tax deductions, itemization or a standard deduction?

    Each deduction that you claim may result in a decrease in the amount of taxes that you owe. However, whether you receive ... Read Answer >>
  6. Are personal loans tax deductible?

    Find out whether interest on personal loans is tax deductible and what types of loan interest can be used to reduce your ... Read Answer >>
Trading Center