What are the 2021 tax rates for mileage deductions?

| Dec 31, 2020 | Tax Law |

If you meet certain qualifications, you may be able to deduct your transportation expenses when you file your taxes in Texas. To ensure that the rates are accurate, the mileage rates are adjusted slightly each year. Here are the mileage rates for 2021.

How much can you deduct on your taxes?

The rates have decreased slightly from the previous tax year. If you drove a vehicle for business purposes, you can deduct 56 cents per mile. If you were driving for medical reasons, you can subtract 16 cents per mile. This amount also applies to the transportation of certain members of the military. Finally, if you drove a vehicle for charity purposes, you can deduct 14 cents per gallon.

The rates have decreased slightly because transportation costs dropped in 2020. In particular, gas was cheaper than it was the previous year. The 2017 tax law changes also affected the deductions you’re allowed to take.

To make sure you’re getting the highest deduction possible, you should always keep track of your business and charity expenses throughout the year. You can write down your mileage or keep track of it in an app. If you don’t want to write off your mileage, you could instead deduct the costs of using your vehicle. An attorney could help you figure out which option is best for you.

Do you need an attorney when you file your taxes?

While you don’t necessarily need an attorney when you file your taxes, he or she could answer any questions you may have. If you find yourself in trouble with the IRS, a lawyer could help you get your finances back on track as soon as possible. He or she could help you navigate the audit process and get liens and levies taken off your properties.