The IRS has released the new mileage reimbursement rates for 2018. For business related travel, the new rate is $0.545 per mile. Driving for medical may be deducted at $0.18/mile and mileage for service to a charitable organization is unchanged at $0.14/mile. Mileage for moving expenses is no longer deductible.
In last month’s article, we recommended that employees get reimbursed for all business related mileage and business expenses, rather than deducting them on their tax personal tax return. Under the new tax law, miscellaneous deductions (which includes unreimbursed employee expenses and home office deductions) are no longer deductible. This lost deduction begins for the 2018 tax year.
If, however, you file a schedule C, you can still deduct the mileage and home office deductions. This would apply to the self-employed, and guest speakers, not to employees who receive form W-2.
Charitable donations are now deductible up to 60% of adjusted gross income (prior limit was 50%).
Finally, the 2018 HSA contribution limits increased to $3,450 for an individual and $6,900 for a family. Those over 55 can contribute an additional $1,000.