Why is Veterans Travel Reimbursement Less, plus we have a monthly Tax deduction?
Note: Private sector medical Gets 18 cents per mile, while Business travel gets 48.5 cents
per mile? This question was brought up during the March 2006 SEC Meeting?
Note: Private sector medical Gets 18 cents per mile, while Business travel gets 48.5 cents
per mile? This question was brought up during the March 2006 SEC Meeting?
VA Standard Mileage Rates Reimbursement for mileage or public transportation may be paid to the
following:
Veterans with service-connected disabilities rated at 30% or more;
Veterans traveling for treatment of a service-connected condition;
Veterans receiving a VA pension;
Veterans traveling for scheduled compensation or pension examinations;
Veterans whose income does not exceed the maximum VA pension rate;
Mileage reimbursement is made at the current rate of 11 cents per mile. Travel payment is subject to a
deductible of $3. For each one-way trip. There is an $18. per month maximum deductible.
You are not subject to a deductible if you are traveling for a compensation or pension examination.
following:
Veterans with service-connected disabilities rated at 30% or more;
Veterans traveling for treatment of a service-connected condition;
Veterans receiving a VA pension;
Veterans traveling for scheduled compensation or pension examinations;
Veterans whose income does not exceed the maximum VA pension rate;
Mileage reimbursement is made at the current rate of 11 cents per mile. Travel payment is subject to a
deductible of $3. For each one-way trip. There is an $18. per month maximum deductible.
You are not subject to a deductible if you are traveling for a compensation or pension examination.
IRS Announces 2006 Standard Mileage Rates
WASHINGTON — The Internal Revenue Service today issued the 2006 optional standard mileage rates
used to calculate the deductible costs of operating an automobile for business, charitable, medical or
moving purposes.
Beginning Jan. 1, 2006, the standard mileage rates for the use of a car (including vans, pickups or
panel trucks) will be:
44.5 cents per mile for business miles driven;
18 cents per mile driven for medical or moving purposes; and
14 cents per mile driven in service of charitable organizations, other than activities related to
Hurricane Katrina relief.
The new rate for business miles compares to a rate of 40.5 cents per mile for the first eight months of
2005. In September, the IRS made a special one-time adjustment for the last four months of 2005,
raising the rate for business miles to 48.5 cents per mile in response to a sharp increase in gas prices,
which topped $3 a gallon.
“The IRS took the extraordinary step of temporarily increasing the standard mileage rates in the
aftermath of Hurricane Katrina,” IRS Commissioner Mark W. Everson said. “We promised to continue
closely monitoring the situation. The 2006 mileage rates reflect that gas prices have dropped.”
The standard mileage rates for business, medical and moving purposes are based on an annual study
of the fixed and variable costs of operating an automobile. Runzheimer International, an independent
contractor, conducted the study for the IRS.
The mileage rate for charitable miles is set by statute.
For the first eight months of 2005, the standard rate for miles driven for medical or moving purposes
was 15 cents per mile, and, except for special Hurricane Katrina rates, the standard rate for miles
driven in service of a charitable organization was 14 cents per mile.
For the last four months of 2005, the agency raised the standard rate for miles driven for medical or
moving purposes to 22 cents per mile. The standard rate for charitable miles remained at 14 cents per
mile––except for charitable miles relating to Hurricane Katrina.
Special Rates for Katrina-Related Charitable Miles
Congress this year also approved special rates in connection with miles driven in service of charities
providing Hurricane Katrina relief.
For the period Aug. 25 to Aug. 31, 2005, the rate for miles driven for charities providing Hurricane
Katrina relief is 29 cents, for deduction purposes, and 40.5 cents, for reimbursement purposes. For the
months of September through December 2005, the special Katrina-related rates are 34 cents for
deductions and 48.5 cents for reimbursements.
For 2006, these Katrina-related charitable rates will be 32 cents per mile for deduction purposes and
44.5 cents per mile for reimbursement purposes.
Revenue Procedure 2005-78 contains additional information and limitations on the use of the standard
mileage rates.
Link: Revenue Procedure 2005-78
WASHINGTON — The Internal Revenue Service today issued the 2006 optional standard mileage rates
used to calculate the deductible costs of operating an automobile for business, charitable, medical or
moving purposes.
Beginning Jan. 1, 2006, the standard mileage rates for the use of a car (including vans, pickups or
panel trucks) will be:
44.5 cents per mile for business miles driven;
18 cents per mile driven for medical or moving purposes; and
14 cents per mile driven in service of charitable organizations, other than activities related to
Hurricane Katrina relief.
The new rate for business miles compares to a rate of 40.5 cents per mile for the first eight months of
2005. In September, the IRS made a special one-time adjustment for the last four months of 2005,
raising the rate for business miles to 48.5 cents per mile in response to a sharp increase in gas prices,
which topped $3 a gallon.
“The IRS took the extraordinary step of temporarily increasing the standard mileage rates in the
aftermath of Hurricane Katrina,” IRS Commissioner Mark W. Everson said. “We promised to continue
closely monitoring the situation. The 2006 mileage rates reflect that gas prices have dropped.”
The standard mileage rates for business, medical and moving purposes are based on an annual study
of the fixed and variable costs of operating an automobile. Runzheimer International, an independent
contractor, conducted the study for the IRS.
The mileage rate for charitable miles is set by statute.
For the first eight months of 2005, the standard rate for miles driven for medical or moving purposes
was 15 cents per mile, and, except for special Hurricane Katrina rates, the standard rate for miles
driven in service of a charitable organization was 14 cents per mile.
For the last four months of 2005, the agency raised the standard rate for miles driven for medical or
moving purposes to 22 cents per mile. The standard rate for charitable miles remained at 14 cents per
mile––except for charitable miles relating to Hurricane Katrina.
Special Rates for Katrina-Related Charitable Miles
Congress this year also approved special rates in connection with miles driven in service of charities
providing Hurricane Katrina relief.
For the period Aug. 25 to Aug. 31, 2005, the rate for miles driven for charities providing Hurricane
Katrina relief is 29 cents, for deduction purposes, and 40.5 cents, for reimbursement purposes. For the
months of September through December 2005, the special Katrina-related rates are 34 cents for
deductions and 48.5 cents for reimbursements.
For 2006, these Katrina-related charitable rates will be 32 cents per mile for deduction purposes and
44.5 cents per mile for reimbursement purposes.
Revenue Procedure 2005-78 contains additional information and limitations on the use of the standard
mileage rates.
Link: Revenue Procedure 2005-78
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