Definition of Mileage allowance:
Taxpayers have the option of using the IRS’s mileage allowance to calculate how much it costs to own and operate a car for tax-deductible purposes during a given tax year, but not the obligation. Taxpayers also have the choice of calculating the actual costs of using their vehicle rather than using the standard mileage rates. If you choose this approach, you must be sure to have documentation to prove the validity of your cost estimates.
Mileage allowance is a term the IRS uses to refer to the deductibility of expenses car owners accrue while operating a personal vehicle for business, medical, charity, or moving purposes.
Funds provided to an individual as reimbursement for mileage placed on their vehicle from performing a duty for another person or business. A pre-determined amount may be set for each mile that the individual travels. People that work in outside sales are often provided a mileage allowance as part of their overall compensation.
A sum of money for travelling expenses, paid according to the number of miles driven.
How to use Mileage allowance in a sentence?
- The home carers usually have to use their own car, often without a mileage allowance.
Meaning of Mileage allowance & Mileage allowance Definition