The costs of owning or leasing and operating a vehicle can be significant. Typical expenses include tires, gas, oil changes, insurance, repairs, maintenance, and registration and licensing fees. The more a car is driven, the more wear and tear it will sustain. This wear and tear only increases when people add miles to their vehicle for business purposes. But many people who use their vehicles for business can receive mileage reimbursement that will help defray the typical expenses.
Ask whether or not the company for which you work has a mileage reimbursement policy. Private sector employers are not required to reimburse employees for the mileage they incur while carrying out business-related tasks, but most employers will reimburse their employees as a retention tactic.
Ensure that you fully understand the terms and conditions of any existing mileage reimbursement policy. The IRS sets a standard mileage rate, which is adjusted annually to reflect current costs, but private businesses are not required to use the rate set by the IRS.
Keep detailed records of your mileage. Ensure that you record all business mileage that is eligible for reimbursement. Consider keeping a small notebook in your vehicle to write down the date of travel, as well as the mileage figures. A personal data assistant (PDA) can also help you keep track of the miles you travel in the course of business.
Multiply the total number of miles traveled, in the execution of business, by the mileage reimbursement rate specified by the company for which you work. For example, if company's mileage reimbursement policy states that they will reimburse each mile at a rate of 50 cents, and you have 212 total miles, you would multiply 212 x $.50, which equals $106.
