When gas prices rose in 2008, one of the few bits of good news was that the federal government was bumping up the business mileage deduction to 55 cents per mile. Now that gas prices have stabilized in 2009, the Internal Revenue Service has reportedly decided to cut back on some of its generosity. According to Wallet Pop, the new per mile rate is 50 cents, a nine percent decline from a year ago. The decrease will likely do little to the casual business traveler, but high mileage sales types and pizza delivery specialists will likely take a big hit to the pocket book when Uncle Sam reaches out his considerable hand on April 15.
Those who moved for work or traveled for medical expenses will receive an even bigger cut this year, down from 24 cents to 16.5 cents. It's difficult to understand why medical/travel mileage was cut so drastically, but we keep trying to remind ourselves that the IRS works in mysterious ways. Heck, we didn't even know you could claim moving and medical mileage, so this one is pretty much a bonus to us.
[Source: Wallet Pop | Image: Scott Olson/Getty]