IRS boosts mileage deduction
There is last-minute, good news for people who keep track of mileage for tax purposes.
The Internal Revenue Service recently increased the mileage deduction rate for miles accumulated during the last quarter of 2005.
The rate went from 40.5 cents to 48.5 cents per mile for miles driven from Sept. 1 to the end of the year. The rate remains 40.5 cents for miles driven in 2005 before September.
“It was because of the price increases in gas,” said Kathleen Nikodym, office manager at H&R Block, 520 W. 23rd St.
Gasoline prices skyrocketed in the aftermath of Hurricane Katrina, which struck New Orleans and the Gulf of Mexico states.
Changes also affected medical and moving mileage. Both are 15 cents before Sept. 1 and 22 cents after.
Charitable mileage remains the same at 14 cents.







