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  Business mileage and travel reimbursement rates are used to calculate allowable deductions for federal income tax purposes. There are numerous details you will have to document to calculate deductions from necessary business expenses. These include knowing what expenses are deductible, how to report them on your return, records you need to prove your expenses, and how to treat expense reimbursements you receive. IRS Publication 463 covers this information in detail.
  
  

Traveling Away from Home

• Travel reimbursements are valid for business travel when your duties require you to be away from your tax home for longer than an ordinary days work. They also apply when your work duties require you to sleep or rest while away from home.
  
  

Tax Home

• For travel reimbursements, you must be traveling away from your business tax home. Your business tax home is the location in which you ordinarily do business. This is separate from your residence.
  
  

Deductible Expenses

• For established business travel, you can deduct for transportation, including car, airplane, bus, taxi or train. You can deduct baggage and shipping charges. Lodging, meals, tips, telephone calls and dry cleaning are deductible expenses. All of these must have proof of being for legitimate for business purposes.
  
  

Standard Mileage Rate

• The standard mileage rate is where you calculate business car expenses based on a flat rate, reimbursed per mile. This rate changes from year to year, so check with the IRS to get the standard mileage rate for the current year's tax returns.
  
  

Actual Car Expenses

• You can also calculate deductions for car travel with the actual car expense method. With actual car expense you calculate individual expenses related to your car, including licenses, gas, oil, tolls, insurance and registration, parking fees, tire and repairs. If you qualify, you can do both the standard mileage rate and the actual car expense method to calculate reimbursements, and then use the method that will provide you with the greatest deduction.