I have a question about mileage reimbursement?

Question

When you reimburse employees for mileage are they required to subtract their normal commute miles from the amount of miles the incurred on a business related trip?For example, if I leave from home and drive to work every day, it’s 32 miles. If I leave from home and I drive 36 miles to visit a client or provider, then another 12 miles to get into the office that’s 48 miles total. Am I required to subtract that 32 miles from the miles that I incurred driving to visit the client or the provider? Another example, If I am asked by my attorney to visit a client in Springfield, MO, and I leave from home and drive 145 miles there then another 145 miles home, am I required to subtract 64 miles from the total?

Answer 1

Yes, you are correct.  You are office based, so the normal commute mileage is deducted from your business miles.  If you didn't visit the client, you'd still drive 64 miles round trip and the IRS doesn't dictate where you choose to live and work, so they don't subsidize normal commutes.  If you were home based, you'd get mileage for all miles driven, since they're all related to client relationships.

Answer 2

I know here in California, the way it was explained to me is, we have a maximum amount of miles we can drive before we are reimbursed. I used to work about ten miles away in an office, but I started working the field, so I had to drive about fifty miles away. The 'normal' commute (which the state decides) was subtracted daily. I think it was something around thirty miles. Your state may be different, so i would check with the department that handles that in Missouri.

Answer 3

that is correct to subtract mileage from  your normal commute to work. you work place is consider home base unless you are 1099 independent contractor.