Determined if you took the STANDARD MILEAGE method last year

Forum|Forum|11 months ago
April 5, 2025
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On my vehicle expenses for my vehicle, I'm being asked if I took the STANDARD MILEAGE method last year and am assuming the alternative is ACTUAL method. How can I determine which I took? Further, are you able to freely switch between both methods?

MindyB

In order to determine this, you'll need to refer to your prior year return.

You are not able to switch freely between methods. If you want to use the standard mileage rate method in any year, you have to do that the first tax year you use your car for business. Then, you can freely switch back and forth. However, if you use the actual expense method in the first year, you need to always use the actual method for the vehicle in all future years.

For more information, see Standard Mileage Rate vs. Actual Auto Expenses

mjgossAuthor

Where do I find on my previous return the option I took last year?

DianeW777

When you are reviewing last year's tax return, go to the vehicle section to see if you used the standard mileage rate. The business miles times the mileage rate for a business vehicle, in 2023, was 65.5 cents per mile. You must look at the vehicle worksheet itself because there may be other expenses included on your Schedule C for Car and Truck expense line.

@mjgoss

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