Iowa allows taxpayers to take an extra itemized deduction for charitable mileage. Here’s how it works. Background On federal tax returns, taxpayers who itemize deductions can take a deduction for mileage driven for charitable purposes. The deduction is equal to 14 cents per mile. (Note: this amount is hard-coded into the law by Congress and […]
Taxpayers may be able to deduct miles driven for charity.
The IRS has released the mileage rates for 2012. The rates are the same as they were for the last half of 2011: Business mileage rate is 55.5 cents/mile. Medical mileage rate is 23 cents/mile Moving expense rate is also 23 cents/mile Charitable mileage rate is 14 cents/mile* *-Unlike the mileage rates for business, medical […]
A Tax Court case on Wednesday serves as a reminder of the importance of the recordkeeping requirements for claiming deductions for charitable contributions. The taxpayer in the case lost a $660 charitable deduction for not following all the requirements. What Are the Requirements? The tax code and regulations require taxpayers to keep documentation of charitable […]