IRS increases mileage-rate deduction.

• Position: National

The IRS has raised the mileage-rate deduction to a record level of 40.5 cents. This is a 3-cent increase from 37.5 cents a mile for this tax season. The raise is due to the increase in fuel costs and the high price of cars.

Other increases include the standard mileage-rate from 14 cents to 15 cents. This rate will benefit those who have moving expenses or mileage related to medical needs. The rate...