Accounts Payable

IRS Moving Mileage Rate

 

Effective January 1, 2008 the amount the IRS allows for deduction of mileage related to a move will decrease from $.20 to $.19 per mile.

For moves in CY2008 the amount in excess of $.19 that you reimburse an employee for mileage associated with a move must be reported as taxable income to the employee. The current mileage rate that the state pays for mileage associated with a move is $.465 (increased 12/01/07). Therefore, the difference ($.275 per mile) between what the employee is reimbursed ($.465 per mile) and what the IRS allows as a moving deduction ($.19 per mile) is considered a taxable reimbursement to the employee. This difference should be identified on the TL transaction as taxable income. This only applies to mileage associated with a move.