How much is the taxable moving mileage rate?

The taxable moving mileage rate is set to align with the IRS guidelines on deducting mileage for moving purposes. As of the most recent updates for tax deductions related to moving expenses, the appropriate rate is established at $.18 per mile. This figure reflects the costs associated with operating a vehicle, which include fuel, maintenance, and wear-and-tear.

Understanding the taxable moving mileage rate is particularly important for payroll professionals, as they need to apply this rate correctly to ensure compliance with tax obligations and accounting practices. Accurate calculation is crucial when assisting employees who are relocating for work purposes, as it affects their taxable income and potential reimbursements they might receive from their employer. Knowing this rate helps in providing precise information regarding how much of their moving expenses would be considered taxable.

It's worth noting that the other rates provided do not reflect the IRS's established moving mileage rate and, thus, would not be applicable in the context of determining taxable expenses related to moving. Therefore, the correct choice of $.18 aligns with current regulations and practices regarding moving-related mileage deductions.