Fuel surcharges, explicit and hidden, continue impacting consumer prices. Virtually every travel method from taxis to airplanes to trucking has included hefty fuel surcharges. Even local merchants who deliver are doing the same.
The Internal Revenue Service (IRS) is generally good about increasing the reimbursement rate for mileage used while using your car for business or as a personal tax deduction (perhaps if you itemize and your out of pocket medical qualifies). What the IRS has traditionally not been good at is changing the rate in response to a market condition in the middle of a tax year.
Not anymore.
The agency everyone loves to pound on is cranking the mileage deductible rate to 58.5 cents next week on July 1. The increase is more than 15%, and if your vehicle is averaging 20 miles per gallon, the 8 cent increase in the mileage deduction rate effectively decreases your cost per gallon by $1.60.
The deductible rate for medical purposes will rise to 27 cents.
Labels: energy, IRS, mileage deduction, mileage rate
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