The Internal Revenue Service has announced the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business purposes. Beginning January 1, 2013, the standard mileage rates for the use of a car, van, pickup or panel truck is 56.5 cents per mile for business miles driven, up one penny from a year ago. The rate serves as a guideline for employers who reimburse their employees for the same and reflects not only fuel costs, but also factors in average wear and tear on a vehicle. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates, however the IRS will deem employers who make qualifying reimbursements up to 56.5 cents per mile as meeting their accounting requirements, thus no income reporting or withholding is required for those reimbursements.
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