Question

29) What is the maximum per round trip an employee may receive under commuting valuation method?

A. $6.00
B. $3.00
C. $1.50
D. 0

Answer 1

The maximum per round trip an employee may receive under the commuting valuation method is C. $1.50.

Step-by-step explanation:

Under the commuting valuation method the allowable reimbursement is determined by the IRS standard mileage rate which is subject to change annually. As of the latest information available the standard mileage rate for business travel is $0.58 per mile. To calculate the maximum reimbursement per round trip we consider the round trip distance and multiply it by the standard mileage rate.

Let's denote the round trip distance as D miles. The maximum reimbursement R is calculated as follows:

`\[ R = D * \text{\textdollar}0.58 \]`

For instance, if the round trip distance is 2.586 miles, the calculation would be:

`\[ R = 2.586 \, \text{miles} * \text{\textdollar}0.58/\text{mile} = \text{\textdollar}1.49988 \]`

Rounding to the nearest cent, the maximum reimbursement per round trip is
`\(C. \text{\textdollar}1.50\).` This figure ensures compliance with the IRS regulations and represents the maximum amount an employee can receive for each mile traveled for work-related commuting.

It's crucial for employers and employees to stay informed about any changes in IRS regulations as these rates are subject to adjustment. Additionally maintaining accurate records of business-related travel is essential for proper reimbursement and tax compliance