UPDATED 13, JAN 2022, 6 MIN READ
You may already be familiar with the standard mileage rate for business. The IRS issues every year standard mileage rates for business, medical and moving purposes, and charity. If you are asking yourself what exactly are the medical and charitable rates and how are they used, then you are at the right place. We will discuss the medical and charity IRS rates and how to use them properly in order to receive your deductions.
The medical mileage rate 2021 is 16 cents per mile driven for medical or moving purposes. The medical mileage rate for 2021 is 1 cent lower than in 2020. See all mileage rates here.
Trips to the doctor, as well as other hospital or dentist visits, are eligible for medical mileage rate deductions. However, it is not every medical visit that you can get reimbursement for. The ones you can are usually not covered by your employer in your healthcare plan. However, while the medical deduction can save you a lot of money, the rates are limited by your adjusted gross income.
This means that the total amount you can claim for medical reasons cannot exceed a particular limit. This figure is based on your adjusted taxable income and takes your age into consideration as well.
Thus, even though we know the IRS medical mileage rate for 2022 to be 18 cents per mile, there is one more condition that one needs to fulfil. You can deduct medical expenses only if they exceed 7.5% of a person’s adjusted gross income. This means that if you earn $100,000 per year, you can claim medical deductions if they are over $7500 (you can’t claim any deductions up to $7500). Read more here.
Expenditures for the diagnosis, cure, mitigation, treatment, or prevention of disease, as well as payments for treatments affecting any structure or function of the body, are included in medical care expenses.
To calculate your medical miles, you can use a standard rate of 18 cents per mile.
Let's imagine you had to travel 200 miles for medical care. To calculate your deduction you would have to multiply the 200 miles you had to drive by the 16 cents per mile cost to arrive. For calculating mileage after January 2022, make sure to use the new 2022 mileage rate.
200 (miles you drove) * 0.18 (standard IRS mileage rate for 2022) = $36
$36 is the amount you can receive in medical deductions.
Above you can find one example of calculating your medical write-off. However, you can also use our mileage calculator to quickly get an estimate for 2021. The mileage calculator takes into account the medical mileage rate for 2021, Stay tuned for a 2022 updated calculator.
There are some medical mileage expenses you cannot get write-offs for. You cannot claim a medical mileage deduction for journeys that are related to improving your overall health. For example, if you are in perfect health and want to visit your doctor for some vitamin shots, this does not go toward your deductible medical mileage.
Furthermore, you must always have scheduled your session or check-up in some way (like email, in person or by phone) before claiming mileage for it.
Another possible deduction? Yes, apart from business and medical, there is a mileage rate set for charitable deductions. The mileage rate for charitable deductions in 2021 is $0.14 per mile driven. For 2022, the mileage rate has not changed at all so you can keep on using the same $0.14 per mile driven.
Charitable deductions are those you can deduct when you volunteer or do some sort of non-profit work. For example, if you drive to volunteer at your favorite nonprofit, that mileage is deductible as part of your charitable donations.
It may seem to you that the charitable mileage rate is rather low compared to others and the reason for that may be that it is the only rate which has not changed in many years. The standard mileage rates for business and medical change every year, while the one for charity has not changed since at least 2007. To get it changed, Congress will have to amend it.
Alternative to using the standard charity mileage rate, you can also use the actual cost method to get write-offs for your volunteer work. In the actual costs you can include all costs you incur such as gasoline, taxes and oil, but not costs related to maintenance or general repairs, costs of tires or insurance. None of the fixed costs (such as depreciation or insurance) are accepted for charitable or medical mileage calculations.
You cannot claim deductions for someone else volunteering whether it is a spouse, your child or someone else. You can only claim deduction when it is you who is volunteering and have to drive to the place of volunteering with your own vehicle.
No, according to the IRS, you can only deduct mileage for charity when you volunteered for a qualified organization. However, you must also not indicate that your contribution is for a specific person - “Contributions to individuals who are needy or worthy. You cannot deduct these contributions even if you make them to a qualified organization for the benefit of a specific person. But you can deduct a contribution to a qualified organization that helps needy or worthy individuals if you do not indicate that your contribution is for a specific person.” Source
Non Profit organizations that are religious, benevolent, educational, scientific, or literary in nature, or that aim to prevent cruelty to children or animals, are all considered qualified. You'll find that descriptions of these organizations can be found under the heading Organizations That Qualify To Receive Deductible Contributions.
If you are not using your car, but taking public transport instead, you can still get reimbursed for your commute to the non-profit organization. Make sure to keep any receipts you may have and that all costs are directly related to the services you provide and are not personal, living, or family costs (and thus, of course, not previously reimbursed).
To properly report your charitable mileage, you need to do the same thing as when you report your business and medical mileage - keep a logbook. You need to keep a proper logbook where you mark what kind of trip you drove with your car - business, personal, medical or charity. That way you will easily have all the data you need for quickly figuring out your tax claims.
One way to easily track and log all your trips while sorting them properly, is by using the Driversnote app. By using the app and the Driversnote iBeacon, you can track each trip automatically and make sure you never miss any.
After you have tracked all your trips, you can log them into the proper category, f.x. medical or charity after which they will safely be stored with a calculation of your reimbursement for when you need to create a report. Driversnote uses the standard IRS mileage rates for reimbursement, but you can also set your own if necessary.
Calculate your medical expenses automatically
After you have generated your report, you can hand it over to your employer or accountant and there shouldn’t be anything else left for you to do. Using an app is one of the easiest ways to track and log mileage today for business, medical, charity or personal purposes.
For information on reporting your business mileage you can check out our IRS mileage guide where you can find information for employers, employees and the self-employed, as well as the current and past mileage rates.
1. What was the medical mileage rate for 2021?
The medical mileage rate for 2021 was 16 cents per mile driven for medical purposes.
2. What was the mileage rate for 2020 for medical?
The medical mileage rate for 2020 was a cent more than in 2021 - 17 cents per mile driven for medical reasons.
3. How do I calculate medical mileage?
When calculating medical mileage you can use one of the two methods below: