Tax News from John T. Vetscher, CPA & Thomas R. Vetscher, CPA

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July 2008

Issue: 11

Mileage Rate Increased to 58.5 Cents

Due to increased gas prices, the IRS has increased the mileage rate to 58.5 cents per mile for the second half of 2008. The mileage rate was 50.5 cents per mile for the first half of 2008. Business owners and employees who don't get reimbursed by their employer can deduct the mileage rate for each business mile driven. This is typically one of the largest deductions business owners can claim, and the increased rate means a larger deduction.

Most of you should have received your stimulus payment by now. If you haven't, please check out the IRS Economic Stimulus Payment Information Center webpage to check the status of your payment.

Enjoy this months newsletter! Hope everyone is having a great summer!

IRS Increases Mileage Rates through Dec. 31, 2008

The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Economic Stimulus Payments Information Center

Since the payments began, the IRS has been fielding a variety of questions on the payment schedule and amounts, factors affecting direct deposit of payments and the eligibility requirements. Check out our answers to the most frequently asked questions. More questions? Check out our other frequently asked questions.