The reimbursement rates that can be paid by health care providers to employees for use of their personal vehicles, without taxable consequences, increases to $.565 per mile effective Jan. 1, 2013. Additionally, volunteers can be paid $.14 per mile when using their personal vehicles for charitable purposes.
Health care providers should provide education to their staff regarding the taxability of amounts paid. This education should include:
- The non-taxable nature of the payment is based on submission of mileage information to the health care provider by the employee.
- Employees can deduct (subject to IRS filing requirements) the difference between $.565 per mile and the lesser amount paid by the health care provider, if applicable.
- The employee can deduct the excess of actual expenses incurred over the reimbursement provided by the health care provider.
Tags: Internal Revenue Service
