Amount

• Each year the IRS publishes standard rates for mileage reimbursement or tax deduction. The amount changes annually because it is based on the average cost of vehicle operation and that varies. The standard rate for business mileage in 2011 was 51 cents per mile. Your employer can pay you up to the standard rate for work-related driving and it will be considered reimbursement of business expenses, not as income.
  
  

Qualified Mileage

• Mileage reimbursement isn't limited to cars. Eligible vehicles include SUVs, small trucks and minivans. As of 2011, taxis and other vehicles for hire are also eligible. You may not claim commuting mileage. The mileage you claim must be directly related to your work. For instance, trips to see a client, to make a bank deposit or to pick up supplies are all allowable. You may not mix personal use, such as a shopping trip, with work-related mileage.
  
  

Mileage Log

• Any driving you want to use to claim mileage reimbursement must be properly documented or it will be considered income and not a business expense. Record all of your work-related driving in a log book. If your employer does not provide a log book, purchase one at an office supply store. Write down the date of each trip, the reason for the trip and the destination. State the mileage driven and include the initial and ending odometer readings of the vehicle for each trip.
  
  

Considerations

• In cases where employers pay more than the standard rate the IRS allows for mileage reimbursement, the excess is considered income and you must report it as such on your tax return. Some employers pay less than the standard rate, however. In that event, you can take the difference between what your employer pays and the standard rate as a tax deduction when you file your income tax return.