Mileage reimbursement rises

The Associated Press

If you use your car for work, the IRS has some good news for you: Your mileage reimbursement is going up for the last four months of this year.

The new rate is 48.5 cents a mile -- up from 40.5 cents -- and reflects higher gas prices.

More good news could follow, since businesses often use the IRS as a benchmark for reimbursing employees for travel costs. No deduction is available for commuting.

The rate could go down again in January if gas prices decline. The rate for figuring deductible medical or moving expenses was also temporarily increased -- to 22 cents a mile. If you use your car for volunteer work, however, you're stuck with 14 cents a mile. That rate is set by Congress.