The Internal Revenue Service issued the 2014 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2014, the standard mileage Reimbursement rates for the use of a car (also vans, pickups or panel trucks) will be:

56 cents per mile for business miles driven
23.5 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations

Mileage reimbursements reported under an accountable plan are tax-free fringe benefits to employees and are not reported on the W-2. However, gas or car allowances must be reported on the W-2.

Encourage your volunteers to track their mileage for ministry volunteer errands and activities and claim them as a tax deduction on their tax return. Keep in min, mileage to attend worship services should not be included as volunteer miles.

Learn more about mileage reimbursements and gas allowances in our Payroll Management course.