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by Roger Chartier
2018 Charity Mileage Deduction
This year 2018 it is 14 cents a mile - again!In 2013 it was 14 cents a mile, in 2014 it was 14 cents per mile and guess what ! 2015 was 14 cents a mile and then again in 2016 it was the same 14 cents per mile. Same in 2017. I wish they would change it just to keep us interested in what it would be this year. For those to whom it applies, it is a saving grace, to cover some of the cost of the fuel to get there. On the business mileage page, we discussed the advantage of using mileage as a deduction form rather than real costs. For most of us using business miles adding the charity miles in is a bonus. The Charity Miles tripMight be 50 miles each way once a week. That adds up to a 100 mile round trip weekly. If you have the 14 cent deduction, then you will be getting $14.00 for the trip as an allowance on your tax return. She'll end up using use a bit less than $8.40 to pay for gas but collect a deduction of $14.00 for the trip. So the situation in the longer run isThat $14.00 - $8.40 for the cost of gas saves her a bonus of $5.60. That is an advantage of only $5.60 but better by far that paying for the gas in full. If she drives the same trip once a week for 10 weeks, then you would gain the allowance of $140.00 and of that your cost might be $84.00 leaving you with a bonus after the tax deal of $56.00. |
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