We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

How Do I Get a Government Mileage Reimbursement?

By Theresa Miles
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

If your employer has an expense policy that addresses employee use of a personal vehicle for business purposes, you can submit a request in accordance with company procedures for a government mileage reimbursement. The company will account for this reimbursement as an operating expense deduction on its income tax returns, based on the government's rules regarding personal vehicles used for business. If your employer does not have a policy in place, or if you are self-employed, the only way to be compensated for the use of your car may be to deduct it as an unreimbursed business expense on your personal income tax return, depending on your local tax codes. This method typically will not, technically, net you a cash-in-hand reimbursement from the government. Instead, the deduction will lower your taxable income so that you will pay less in taxes.

Governments typically make provisions in their tax code that deal with business use of a privately owned vehicle. These provisions establish the framework that employers must use to reimburse you for the use of your car for business matters. Businesses that follow the rules can deduct reimbursements made to employees as a business expense on the company's income tax return.

In the US, tax code regulations allow you to compute the amount that you should be reimbursed for use of your car by either using the exact cost of expenses or by using a flat per mile rate. The government mileage reimbursement rate is set by each government and might change every year. If you choose to use the flat rate, you should keep track of the miles driven for business purposes and multiply it by the government rate that is in effect at that time. The rate that is or was in effect for any year can always be found on the government's website.

Government mileage reimbursement is provided by your employer pursuant to an employee expense policy. Your employer is not required to reimburse you, however, just as you are not required to use your personal car to further the business. If you have used your car for business purposes and have not been compensated, you can deduct the government mileage reimbursement on your personal income tax return.

You are required to follow certain formalities when claiming a government mileage reimbursement for use of your car. You typically must keep a travel log that indicates the day, time, starting location, ending location, mileage and purpose of every business trip. This log should be turned in to your employer with your reimbursement request so it is available in case of a tax audit. Keep it as part of your records if you are self-employed or are filing for the deduction on your personal income tax return.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Discussion Comments
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.