Federal Mileage Reimbursement

Learn about Federal Mileage Reimbursement and more with Workstream and improve your hiring vocabulary. Workstream helps companies hire better, faster - everyday.
Schedule a Demo Learn more about workstream

What is the meaning of Federal Mileage Reimbursement? 

Federal mileage reimbursement refers to the amount that can be deducted from an individual’s federal income taxes for the costs of operating an automobile for qualified business, charitable, moving, or medical purposes. The amount of federal mileage reimbursement is based on the miles that a vehicle is driven for the aforementioned purposes. 

Is there another name for Federal Mileage Reimbursement? 

Yes, it is also often called the “standard mileage rate”.

How is the Federal Mileage Reimbursement rate set? 

The Internal Revenue Service (IRS) determines the federal mileage reimbursement rate. It is adjusted yearly and would depend on the study of fixed and variable costs of operating a vehicle for business use. On the other hand, the standard mileage rate for medical and moving purposes is based on variable costs like gas and oil. Finally, the standard mileage rate for a charitable purpose is according to law. 

The IRS uses cost data and analysis by Runzheimer International which is an independent research firm and business vehicle technology and solutions provider. Runzheimer International has been working with the IRS since 1980.  

For 2021, here are the standard mileage rates for the use of a car, van, pickup, or panel truck:

Are taxpayers required to use the IRS standard mileage rates? 

Even if the rate is set by the IRS, taxpayers are given the option to compute the amount for deduction using the IRS standard mileage rate or base it on actual expenses of driving their vehicle. They have to provide adequate records. 

What are some reminders on Federal Mileage Reimbursement? 

Try out Workstream to hire employees for
your business

A revolutionary hiring process for Hourly positions

A revolutionary hiring process for Hourly positions Hiring hourly staff in San Francisco can be a tough job. Workstream can help accelerate the process by letting you post on job boards like Indeed within seconds.

1-Click Job Posting

No more tedious copy and pasting. We integrate with all the top job boards. All applicants funnel into one intuitive dashboard.

Text-to-Apply Posters

Print out your unique QR code and text message number. Applicants scan/text to see all open positions and apply right away.

Automated & 2-Way SMS

Engage with applicants via text. Include links to screening questions, forms, and more. Use 2-way text to answer questions.

Endless Integrations

Connect Workstream to your calendar so applicants can schedule interviews. Streamline onboarding with background check & HR integrations.

Candidate Tracking & Scoring

View all your applicants and employees in one place. Make notes on their progress. Access their docs anytime from anywhere.

Customizable Templates

We provide templates for everything from job postings to offer letters. Send links to docs and tax forms via text message so new hires sign digital copies.

What other owners
think about hiring through Workstream

"I love everything about Workstream. It is easy to navigate and it has proven to be a powerful tool in recruiting and sourcing. "

Dimo's Pizza - Allen

Currently hiring on Workstream for:

FOH Team Member Wrigleyville

General Manager I

Catering Lead

"Great at reminding me where I am at with an applicant, awesome way to have them schedule their own interviews."

Sports Basement

"Everyone at Workstream is so helpful and willing to fix anything we have going wrong. Thanks!"

Envoy America