Standard mileage rate for nanny?

Question

I am a nanny and use my own car during the week to drive the children to and from activities, lessons, and playgroups. In the past I have not been reimbursed for the cost of gas. The family felt bad that I could not write off the mileage in my taxes and have now offered to do so. They have offered to give me $10-15/week. Should I accept this or suggest using the standard mileage rate (which I believe is 48.5 cents per mile) I feel using the standard rate is more fair especially with these ever changing gas prices! What do you think?

Answer 1

Considering the price of fuel, the wear on YOUR vehicle, I would say that using the standard rate would be more than fair.  Obviously, that would be the most amicable approach for both parties.  If you weren't doing all the driving, they would have to do it, or pay someone else even more.  The mileage you are putting on your car is depreciating it's value, and also speeds up your need for maintenance (oil changes, tires, etc.)...by using the standard rate, both parties can be satisfied.

Answer 2

The "standard" rate is set by the IRS for business deductions.  Very few employers actually pay that rate.   It depends on the car you are driving.

Answer 3

I'm also a nanny.  I get paid a per kilometer (canadian) rate of $0.50.

Answer 4

I'd go for the standard rate, that way you are covered.

Answer 5

If you can get the standard mileage rate I would recommend it, however even companies don't necessarily pay at that rate.  I expense my miles to Chrysler and only get paid .42 a mile.  I guess it really depends on how many miles you average a week and how bad you need the extra cash.  Good luck!

Answer 6

10-15 dollars/week covers 20-30 miles of driving.  

If you're driving more than that, you should be paid more.  The IRS increased the mileage allowance for 2008 to 50.5 cents/ mile ( see below ).  If your employer is not willing to reimburse you for the miles you drive, suggest they purchase a vehicle to allow you to transport their children.  This way, it's fair.  They absorb the cost of child care for their children and you're not forced to accept less than you're entitled to receive.

Why can't you claim the miles?  This is a standard deduction and everyone's entitled to it.  You can always record miles and claim the cost as a business expense.  If they insist they won't pay you more than $15 a week (cheap-azz dirty bustids), deduct the money they give you from your mileage expense and claim the rest.  Talk to the IRS, they will give you free advice on filing.