December 5, 2000

RE: Adoption of IRS Optional Standard Mileage Rates for 2001

The Department of Taxation adopts the IRS optional standard mileage rates for employees, self-employed individuals, or other taxpayers to use in computing deductions for operating a passenger automobile for business, charitable, medical, or moving expense purposes in 2001.  The standard mileage rates which follow the IRS rates are summarized as follows:

Business 34.5 cents per mile
Charitable 14 cents per mile
Medical or Moving 12 cents per mile

To claim the allowable standard mileage for business purposes, use federal Form 2106 - "Employee Business Expenses" or federal Form 2106-EZ - "Unreimbursed Employee Business Expenses," as the case may be.  If you do not have to file either Form 2106 or 2106-EZ, see the federal instructions to properly claim the unreimbursed mileage (i.e., travel or transportation expenses) on federal Schedule A - "Itemized Deductions."

To claim the allowable standard mileage for charitable or medical purposes, refer to the  federal instructions for Form 1040 (Schedule A - "Itemized Deductions").  The allowable standard mileage amount must be shown on Schedule A.

Hawaii Form N-139 - "Moving Expenses" must be used to claim the mileage for moving expenses.

Forms and other tax information may be downloaded from the Department's website at:  On Oahu, forms may be ordered by calling the Department's Forms Request Line at:  808-587-7572.  Persons who are not calling from Oahu, may call:  1-800-222-7572 to receive forms by mail or 808-678-0522 from a fax machine to receive forms by fax.

Director of Taxation

HRS Section Explained:  HRS Section 235-2.3(a)