Commute mileage is mileage recorded from trips between an employee’s home and their primary place of work. Under IRS rules, this mileage is personal and cannot be submitted for reimbursement.
The complete set of rules that determine whether a trip is a commute are found in IRS publication 463.
While a trip between a driver’s home and their office is considered a commute, trips between different offices, or between a driver’s home and a temporary work location are not considered commutes and are eligible for reimbursement as business mileage.
Some companies use automated commute deductions on their reimbursement programs. These are rules that automatically deduct commute trips, or estimated commute mileage, from drivers’ business mileage before they are reimbursed.
If you’re curious about whether a vehicle reimbursement program is a good fit for your business, consult with a Cardata expert to learn more.