Changes to the IRS Mileage Reimbursement<br> Rate for 2014

Changes-to-the-IRS-Mileage-Reimbursement-Rate-for-2014 As a nanny, it’s crucial to keep track of expenses you incur that can be deducted from your taxes. With ever-changing tax laws and policies, knowledge is key to ensure you are reimbursed by your employer.

One of the most costly work-related expenses nannies incur is automobile expenses. When using your own vehicle to transport children and complete work-related errands, you will need to use the mileage allocation stipulated by the IRS standard mileage reimbursement rate.

Before transporting children in your vehicle, it is imperative that you check with your automobile insurance provider to ensure that the policy covers transporting children for work. It may be necessary to modify your policy so you can continue using your vehicle for work. Make sure that you are aware of the safety laws regarding child restraints, car seats and air bags.

Standard Mileage Rates

As of January 2014, the IRS standard mileage reimbursement rate was set at 56 cents per mile for business miles driven. This amount is a half cent less than the 2013 allocation.

In addition, the IRS has stipulated the following IRS standard rates:

56 cents per mile for business miles driven
23.5 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations

This rate is designed to cover transportation costs that include the following:

Gas
Vehicle Maintenance
Vehicle Wear and Tear during work hours

Please note that, according to the Internal Revenue Service, nannies are not allowed to use commutes to and from work as a tax deductable expense.

Tracking Your Mileage

Careful record keeping will help you breeze through requests for reimbursement at the end of the year. Morningside Nannies suggests nannies keep track of work-related mileage by:

Keeping a log book in the vehicle and tracking the starting and ending mileage.
Purchase and use a notepad especially designed to track mileage.
Use an iPhone app like MileTracker, Track My Mileage, MileIQ, Trip Cubby, or a variety of other available applications.

Finalizing the Paperwork

After tracking your work-related mileage for the year, begin by tallying up the miles, multiplying them by the 2014 rate of .56 cents and turn in a reimbursement request to your employers. The request should provide a detailed account of the number of miles driven, the IRS reimbursement rate and the total requested.

Be sure to keep copies of all paperwork and mileage for your own records.

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