Mileage Reimbursement in Missouri in 2024

In 2024, mileage reimbursement is super important to understand for businesses and employees who drive for work in Missouri. As an employer, maybe you’re looking to cover employee travel expenses, or as an employee, maybe you’re tracking miles for tax purposes. Either way, knowing the rules can save both of you time and money. Here’s what you need to know about the IRS standard mileage rate, Missouri-specific rules and policies, and best practices for mileage tracking.

The IRS standard mileage rate for 2024

The IRS releases a standard mileage rate every year. This year it’s been set to $.067/mile, which means that businesses and self-employed people can use that rate to determine what’s eligible for reimbursement for business-related driving expenses. The IRS mileage reimbursement rate continues to be an efficient method to account for vehicle wear and tear, depreciation, gas, and other operating costs. 

The IRS sets this rate to make tax filings and reimbursements easier. Employers in Missouri can follow this rate to avoid tax complications. For employees, mileage reimbursements at or below the IRS rate are non-taxable, which means that if you’re reimbursed $0.67 per mile driven for work, none of that amount is taxable, as it’s not seen as income, and won’t need to be reported on your tax return.

If you are reimbursed over the IRS standard rate then the difference is considered income and is subject to taxation.

Mileage Reimbursement Laws in Missouri

Missouri follows federal law when it comes to mileage reimbursement, which means that there are no state-mandated mileage reimbursement laws. This typically means that employers will follow the IRS standard mileage rate to reimburse employees for business miles driven in personal vehicles.

That being said, employers are not actually required to reimburse mileage at all, unless specified in a contract or company policy. So, if mileage is not reimbursed and is required for job duties, employees may be able to deduct these mileage expenses from their annual returns. However, recent tax reforms under the Tax Cuts and Jobs Act limit this option for most employees.

What is business mileage and what is personal mileage?

To qualify for mileage reimbursement, the driver must be driving for business purposes. This includes travel for meetings, doing field tasks, transporting goods, or visiting job sites, etc. Personal trips, which do not qualify for reimbursements under the IRS, like commuting from home to work, are not reimbursable unless your office is a temporary workplace.

If you’re seeking reimbursement for your driving then mileage logs are key here. Accurate mileage tracking is necessary for distinguishing between personal and business miles. Employees should keep detailed logs that include the following dates, destinations, and the number of miles driven. This helps ensure compliance with state law and IRS guidelines, particularly in audits.

Special considerations for Missouri state employees

Business use: $0.67 cents per mile

Starting January 1, 2024, the standard mileage rate for business use will increase to $0.67 cents per mile, being a 1.5 cent rise from 2023. This adjustment is relevant for individuals who drive their personal vehicles for business-related activities on behalf of their employer.

Medical or moving purposes: $0.21 cents per mile

For qualified active-duty members of the Armed Forces who use their vehicles for medical visits or moving, the rate will be $0.21 cents per mile in 2024. This is a decrease of one cent from 2023.

Service of charitable organizations: unchanged at $0.14 cents per mile

The rate for miles driven in service of charitable organizations remains unchanged at $0.14 cents per mile, as set by statute. This rate is applicable to volunteers who contribute their time and resources to support charitable causes.

Fair Labor Standards Act (FLSA)

The Fair Labor Standards Act (FLSA) is a rule by the federal government stating that an employee who drives their own car for work cannot earn less than the federal minimum wage after reimbursement. So if the actual cost to operate their personal vehicle diminishes their earning to below $7.25 an hour, they are eligible for a reimbursement to at least that amount.

So while businesses in Missouri don’t necessarily need to abide by the IRS standard rate when reimbursing their employees for the business use of their personal vehicles, they do need to abide by the FLSA. 

Mileage Tracking Tools

Keeping accurate mileage logs is a best practice for IRS compliance. If you’re an employer in St. Louis, an employee in California, or if you’re just a self-employed contractor, you should consider using mileage tracking apps to streamline the process. There are modern tools like the app that Cardata offers — it’s an easy way to record miles, track business-related travel, and to make accurate IRS-compliant reports. 

Rules for trucks and pickups

Certain vehicles, like panel trucks and pickups, could have different mileage rules depending on their use. For example, if you’re driving a panel truck or heavy-duty pickup for business purposes, the standard mileage rate may not fully cover the full costs you incur while on the job. In these situations, tracking actual expenses might yield more significant tax deductions — and savings!

Illinois vs. Missouri comparison

While Missouri generally follows federal guidelines, it’s interesting to compare it with neighboring states like Illinois. Illinois has more structured wage and labor laws, including specific mileage reimbursement requirements for certain jobs. In Missouri, it’s largely left up to the employer’s discretion, though using the IRS rate provides a simple and widely accepted standard.

Conclusion

In 2024, Missouri businesses should make sure that they are reimbursing employees fairly for their work related travel expenses, at least in line with the IRS standard mileage rate. Employees, on the other hand, need to keep detailed records and mileage logs and stay up to date on the latest IRS rates so that they can get what they’re entitled to, as well as to avoid tax pitfalls.

If you’re a Missouri business looking to streamline your mileage tracking and reimbursement processes, consider using Cardata to simplify your mileage expenses and ensure compliance. 

Sources

1. [IRS.gov – Standard Mileage Rates](https://www.irs.gov/tax-professionals/standard-mileage-rates)

2. [Missouri State Reimbursement Policies](https://oa.mo.gov/accounting/state-agencies/state-travel-reimbursement)

3. [Tax Cuts and Jobs Act Overview](https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-key-provisions)