Effective January 1, 2011, the IRS increased the rate that an individual can deduct for mileage related to a move. The rate has increased from $.165 per mile to $.19 per mile.
State and University employees who are reimbursed for mileage for relocation are reimbursed at $.485 per mile per section F-10.03 of the Compensation Plan. The difference between the rate that the state reimburses the employee for the move and the rate the IRS allows as a deduction is taxable to the employee. For any move that occurs after December 31, 2010, the taxable mileage reimbursement would be $.295 per mile ($.485 - $.19). The non-taxable portion of the mileage reimbursement would be $.19 per mile.
State and University employees who are reimbursed for mileage for relocation are reimbursed at $.485 per mile per section F-10.03 of the Compensation Plan. The difference between the rate that the state reimburses the employee for the move and the rate the IRS allows as a deduction is taxable to the employee. For any move that occurs after December 31, 2010, the taxable mileage reimbursement would be $.295 per mile ($.485 - $.19). The non-taxable portion of the mileage reimbursement would be $.19 per mile.
