If you drive for work, you should be getting paid for the gas you spend. Unfortunately many employees miss out because they don’t know the simple steps to claim. This guide breaks down the whole process in plain language, so you can stop leaving money on the pump.
Fuel reimbursement is a payment from your employer that covers the cost of gasoline you use on a business trip. Companies usually calculate it in one of two ways: a per‑mile rate (the IRS standard mileage allowance) or by submitting actual fuel receipts. The per‑mile method is popular because you only need to record the miles you drive, not every fuel receipt.
Most US employers follow the IRS rate of 65.5 cents per mile for 2024, but some offer a higher amount. Check your company policy or employee handbook to see which method they require. Knowing the right rate helps you avoid under‑ or over‑claiming.
First, track every business trip immediately. A quick note in a phone app or a handwritten log works. Include the date, destination, purpose, and miles driven. Consistency is key – if you miss a day, it can look suspicious during an audit.
Second, keep all fuel receipts, even if you use the mileage rate. Some employers require proof of expenses for larger trips. Store them in a digital folder on your phone; most receipt‑capture apps let you snap a picture and tag it with the date.
Third, know the tax angle. If you’re self‑employed, the mileage rate is tax‑deductible, which means you can claim it on your Schedule C. Employees can’t deduct mileage on a federal return, but some states still allow it. Talk to a tax professional to see what applies to you.
Fourth, watch out for mileage caps. Some companies only reimburse up to a certain number of miles per month. If you regularly exceed that, ask for a policy review – a higher cap can save you money and keep morale high.
Finally, submit claims promptly. Most firms have a monthly deadline; waiting until the end of the quarter can delay payment. Use the company’s online portal if available; it speeds up approval and creates an electronic trail.
By following these steps – logging trips, keeping receipts, checking rates, and filing on time – you’ll make sure every gallon you buy turns into cash back. Fuel reimbursement doesn’t have to be a headache; treat it like any other expense report and you’ll see the dollars roll in.
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Jul, 7 2025