Hello,
I work as a staff photographer for a PA newspaper and am paid 28 cents a mile towards expenses. All our photographers use their own vehicles. My girlfriend works for a bank and when she travels is paid whatever the IRS standard is at the time. I'm curious to know why or how can mileage rates fluctuate from employer to employer instead of each having to pay the IRS standard?


Thanks everyone....

All the IRS requires is that any mileage rates over the rate they state for the period (currently $.485 per mile) is taxable. It doesn't state that the employer must pay that amount or, in fact, any amount at all. The only state that even requires that expenses be reimbursed (including expenses to operate your personal vehicle for business) is California.

If it costs you more than that, including maintenance, etc., and you keep good records, you MAY be able to deduct the unreimbursed portion from your 1040 as unreimbursed business expenses; that, however, is only for the excess of 2% of AGI.

Thank you Patty. None of the other photographers were quite sure why it was 28 cents a mile and not the IRS standard, so I am happy to have finally gotten some clarification. I'll have to look into it further when tax time comes.

The IRS rate is not a rule that employers must follow. It is simply the amount that employers can pay and deduct without tax implications for it or the employee.