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Car and mileage reimbursements

Excluding miles driven to and from the employee’s home, household employees must be reimbursed by their employers if they use their own cars for work-related chores; this is not considered as a taxable compensation, and neither the employer nor the employee is required to pay taxes on this benefit.

The current Federal mileage reimbursement rate is 53.5 cents per mile; it is intended to cover the cost of gas plus general wear and tear on the car.

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