Personal mileage is the amount of mileage driven for personal, non-work-related reasons. On vehicle reimbursement programs and company car programs, separating personal mileage and business mileage has important tax implications. Personal mileage includes any miles driven that do not fall under the IRS criteria for business mileage. These miles are not eligible for reimbursement and are not counted on the taxable income test.
This could include driving to lunch from the office, going to an appointment, or using a vehicle during weekends and evenings. Importantly, commute mileage is also considered personal by the IRS.
Tracking personal mileage tends to be more relevant for company car and fleet programs, where it is used to calculate personal use chargebacks.
For more information on what qualifies as a business mile, see IRS publication 463. To learn more about how a vehicle reimbursement program could impact your business, consider speaking with a Cardata expert to learn more about solutions for your team.