Surprising as it may seem, Q4 is at your doorstep, knocking and asking for attention. What’s more, it’s that time of year when everything starts getting busy: kids go back to school, football starts, and then the holidays are just up ahead. During this time, you might also be hearing “cha-ching, cha-ching” as what lies ahead can be financially challenging. Consider a few ways to frame this and strategies to set up goals as you bring the year to a close.
Map out the big picture. While all the things in your immediate future might be at the forefront of your mind, take a step back. What’s your five-year vision? Where are you with your big life goals? Do they include saving for a down payment for a house, a dream vacay, or setting up a college fund for your kids? Decide on completion dates and work backward. What needs to happen for these things to become realities?
Focus on the next 90 days. Now you can get a bit more granular. What’s looming in the future, before the year ends? What are your holiday plans? Usually this involves expenses (travel and food). Brainstorm about how to economize. Can you cost-share with family and friends? (Thinking here about your five-year vision.) What about your home and cars? Do they need work, and what might you spend? Do you have an emergency fund to help with all this? If you don’t, start one! Keep all of these things in mind as you make your way toward next year and beyond.
Set up a tracker. It can be an Excel spreadsheet, a notebook, or a whiteboard – whatever works for you. Color code different milestones and then brainstorm (yes, again) to see how you can reach these goals. Do you need to cut expenses in some areas? Pick up a side hustle? Purge your closet (house, too), and sell some things? To get started, here are a few tracker templates to kick things off.
Create SMART goals. You might have heard of this acronym, but it stands for:
Specific: Needs to be concrete, not vague.
Measurable: Must be specific dollar amounts.
Attainable: Within your budget but still challenging.
Relevant: Aligned with your five-year goals, your future dreams.
Time-bound: Hard deadlines.
Separate your goals into buckets. Those would be long-, medium-, and short-term.
Long-term: This is 5-plus years. Early retirement by XX years old with a specific amount of money in the bank. Paying off your house by a certain date. Having a certain amount of cash saved for your kiddos after you’re gone.
Medium-term: This is 1-5 years. The usual suspects include paying off your car, student loans, consumer debt, or even building up a (dollar amount goes here) reserve for a down payment on a house or second property.
Short-term goals and quarterly goals: This is less than 1 year – hot items you cannot ignore. Starting, or adding to, your emergency fund that will equal, let’s say, $5,000. Or, for instance, saving $8,000 for a family vacation. You can also look at these small goals as subsets of larger goals: paying off X% of your house or car note by a certain date.
In sum, all of the above are simple ways to wrap your head around how to navigate Q4 financial goals – and beyond – by carving them up into smaller, digestible steps. If you can get organized, take on the last half of the year with intention, and make some real progress, there’s nothing in the (fiscal) world you can’t accomplish if you set your mind to it.
August 1, 2026 · Blog, Tip of the Month, Uncategorized
⏱ 4 min read
Surprising as it may seem, Q4 is at your doorstep, knocking and asking for attention. What’s more, it’s that time of year when everything starts getting busy: kids go back to school, football starts, and then the holidays are just up ahead. During this time, you might also be hearing “cha-ching, cha-ching” as what lies ahead can be financially challenging. Consider a few ways to frame this and strategies to set up goals as you bring the year to a close.
Map out the big picture. While all the things in your immediate future might be at the forefront of your mind, take a step back. What’s your five-year vision? Where are you with your big life goals? Do they include saving for a down payment for a house, a dream vacay, or setting up a college fund for your kids? Decide on completion dates and work backward. What needs to happen for these things to become realities?
Focus on the next 90 days. Now you can get a bit more granular. What’s looming in the future, before the year ends? What are your holiday plans? Usually this involves expenses (travel and food). Brainstorm about how to economize. Can you cost-share with family and friends? (Thinking here about your five-year vision.) What about your home and cars? Do they need work, and what might you spend? Do you have an emergency fund to help with all this? If you don’t, start one! Keep all of these things in mind as you make your way toward next year and beyond.
Set up a tracker. It can be an Excel spreadsheet, a notebook, or a whiteboard – whatever works for you. Color code different milestones and then brainstorm (yes, again) to see how you can reach these goals. Do you need to cut expenses in some areas? Pick up a side hustle? Purge your closet (house, too), and sell some things? To get started, here are a few tracker templates to kick things off.
Create SMART goals. You might have heard of this acronym, but it stands for:
Specific: Needs to be concrete, not vague.
Measurable: Must be specific dollar amounts.
Attainable: Within your budget but still challenging.
Relevant: Aligned with your five-year goals, your future dreams.
Time-bound: Hard deadlines.
Separate your goals into buckets. Those would be long-, medium-, and short-term.
Long-term: This is 5-plus years. Early retirement by XX years old with a specific amount of money in the bank. Paying off your house by a certain date. Having a certain amount of cash saved for your kiddos after you’re gone.
Medium-term: This is 1-5 years. The usual suspects include paying off your car, student loans, consumer debt, or even building up a (dollar amount goes here) reserve for a down payment on a house or second property.
Short-term goals and quarterly goals: This is less than 1 year – hot items you cannot ignore. Starting, or adding to, your emergency fund that will equal, let’s say, $5,000. Or, for instance, saving $8,000 for a family vacation. You can also look at these small goals as subsets of larger goals: paying off X% of your house or car note by a certain date.
In sum, all of the above are simple ways to wrap your head around how to navigate Q4 financial goals – and beyond – by carving them up into smaller, digestible steps. If you can get organized, take on the last half of the year with intention, and make some real progress, there’s nothing in the (fiscal) world you can’t accomplish if you set your mind to it.
These articles provide general information on tax, accounting, and financial topics for small businesses and individuals. They are educational in nature and are not specific legal, accounting, financial, tax, or other professional advice, and should not be relied upon as such. This content was prepared by Service2Client and may have been reviewed or edited by the website owner for accuracy and compliance. Look for a trust mark below for verification details. No representation is made that any approach described will achieve a particular result, and no regulatory or professional body has reviewed or endorsed this content. Because each situation is different, readers should consult a qualified professional about their specific circumstances before acting. Images accompanying these articles are protected by copyright and may not be copied or reused.
No matter how well you know someone, you usually learn a lot more once you’ve traveled with them. We are all different in this activity, from people who prefer aisle seats over window seats, to Airbnb renters or hotel enthusiasts, to the outdoorsy versus museum aficionados.
Friendship compatibility does not always translate to travel compatibility. Therefore, before you load up the car or board public transportation, it will help to communicate preferences, establish a few ground rules, and, perhaps most importantly, decide how to share expenses.
There are plenty of advantages to traveling with another person or a group of people, even if you tend to be a loner. For example, sharing expenses for accommodations, a car rental, or even a bottle of wine over dinner can cut your vacation budget substantially. However, if you don’t have a plan for what expenses to share and how to track them, you may return home short-changed, resentful, and with one less person in your life.
Ground Rules
It’s important to gauge upfront if everyone is on the same page as to how much money they want to spend on the trip, and even establish a maximum budget so no one gets trapped into paying more than they can afford. This means determining the level of accommodations (e.g., luxury versus budget-friendly) to shop for, whether or not you want the option to cook meals as opposed to eating out all the time, and the main activities the group plans to engage in (e.g., free hiking versus expensive snow skiing). Establish what types of expenses will be shared, such as group meals, housing and car rental, and what will be paid for individually, such as airfare, solo outings and souvenirs.
Choose Your Tracking Method
There are two approaches for sharing the expenses of travel: Wing it or track it. Winging implies a more casual tactic. For example, one person picks up the hotel room tab, another pays for the rental car, another pays for meals. Perhaps you rotate or take turns picking up comparable bills. The goal is to generally spread expenses evenly across all payers, but winging it may lead to one (or more) travelers paying more while the other(s) pay less. If everyone agrees their outlays may differ, then this tactic will probably work just fine.
Tracking Tools
The second approach is to track all shared expenses with some degree of accuracy. This is easier if all expenses are shared evenly, but more complex if expenses need to be broken down into who ordered a salad and who ordered the filet mignon.
Fortunately, there is a plethora of electronic technologies and digital tools designed to make it easier to track travel expenses and ensure no one overpays – right down to the penny.
PayPal, Venmo, Zelle – These services make it easy to send or request money using apps. They may require travelers to keep receipts and calculate individual tabs, then settle up at the end of the day or the end of the trip. This tactic can be a little unwieldy, and may require manual tracking to ensure no one is paying too much or too little along the way. All travelers should sign up for at least one compatible money transfer app; they are generally free to use.
Splitwise – This app enables participants in a travel group to enter the expenses they paid by adding the names of the participants and breaking down the individual amounts each person contributed to each bill. The app tracks expenses by person, then tallies up who owes money at the end. Splitwise calculates who owes whom. Travelers can then settle balances using their preferred payment method, such as PayPal, Venmo, Zelle, bank transfer, cash, or another supported payment service. Splitwise is just one brand name of many apps that work similarly, including Tricount and Revolut.
Cino – This app works a bit differently in that each traveler links it to their personal credit or debit card, and the group Cino card is loaded into Apple Pay or Google Pay. Then all participants share a virtual card to pay for expenses, which divides each payment at the point of purchase among the participants for that expense. When one person pays for an expense, everyone’s share is automatically charged to each member’s connected credit or debit account. Note that Cino does not break down invoices by line item to track exactly who ate what; it follows a split ratio (e.g., 50%-50%) as determined up front by the group.
Artificial Intelligence – Travelers may want to give AI a try, where as they start with a prompt asking the service to track and split group expenses, then enter the names of participants and related expenses to the prompt on an ongoing basis. AI tools can organize, categorize, and calculate shared expenses that users enter manually. Some AI assistants may also summarize spending trends or generate settlement calculations, but they generally do not automatically track purchases unless integrated with financial apps.
Given today’s higher prices, group travel is becoming more prevalent as a way to share the cost of vacation. According to a 2025 Zeta Global survey, 40 percent of travelers are going on trips with family while 21 percent opt to vacation with friends. Today’s new digital tools make it easy to track and share expenses so that you don’t strain relationships with travel companions.
Travel Companions: How to Share Expenses
August 1, 2026 · Blog, Financial Planning, Uncategorized
⏱ 5 min read
No matter how well you know someone, you usually learn a lot more once you’ve traveled with them. We are all different in this activity, from people who prefer aisle seats over window seats, to Airbnb renters or hotel enthusiasts, to the outdoorsy versus museum aficionados.
Friendship compatibility does not always translate to travel compatibility. Therefore, before you load up the car or board public transportation, it will help to communicate preferences, establish a few ground rules, and, perhaps most importantly, decide how to share expenses.
There are plenty of advantages to traveling with another person or a group of people, even if you tend to be a loner. For example, sharing expenses for accommodations, a car rental, or even a bottle of wine over dinner can cut your vacation budget substantially. However, if you don’t have a plan for what expenses to share and how to track them, you may return home short-changed, resentful, and with one less person in your life.
Ground Rules
It’s important to gauge upfront if everyone is on the same page as to how much money they want to spend on the trip, and even establish a maximum budget so no one gets trapped into paying more than they can afford. This means determining the level of accommodations (e.g., luxury versus budget-friendly) to shop for, whether or not you want the option to cook meals as opposed to eating out all the time, and the main activities the group plans to engage in (e.g., free hiking versus expensive snow skiing). Establish what types of expenses will be shared, such as group meals, housing and car rental, and what will be paid for individually, such as airfare, solo outings and souvenirs.
Choose Your Tracking Method
There are two approaches for sharing the expenses of travel: Wing it or track it. Winging implies a more casual tactic. For example, one person picks up the hotel room tab, another pays for the rental car, another pays for meals. Perhaps you rotate or take turns picking up comparable bills. The goal is to generally spread expenses evenly across all payers, but winging it may lead to one (or more) travelers paying more while the other(s) pay less. If everyone agrees their outlays may differ, then this tactic will probably work just fine.
Tracking Tools
The second approach is to track all shared expenses with some degree of accuracy. This is easier if all expenses are shared evenly, but more complex if expenses need to be broken down into who ordered a salad and who ordered the filet mignon.
Fortunately, there is a plethora of electronic technologies and digital tools designed to make it easier to track travel expenses and ensure no one overpays – right down to the penny.
PayPal, Venmo, Zelle – These services make it easy to send or request money using apps. They may require travelers to keep receipts and calculate individual tabs, then settle up at the end of the day or the end of the trip. This tactic can be a little unwieldy, and may require manual tracking to ensure no one is paying too much or too little along the way. All travelers should sign up for at least one compatible money transfer app; they are generally free to use.
Splitwise – This app enables participants in a travel group to enter the expenses they paid by adding the names of the participants and breaking down the individual amounts each person contributed to each bill. The app tracks expenses by person, then tallies up who owes money at the end. Splitwise calculates who owes whom. Travelers can then settle balances using their preferred payment method, such as PayPal, Venmo, Zelle, bank transfer, cash, or another supported payment service. Splitwise is just one brand name of many apps that work similarly, including Tricount and Revolut.
Cino – This app works a bit differently in that each traveler links it to their personal credit or debit card, and the group Cino card is loaded into Apple Pay or Google Pay. Then all participants share a virtual card to pay for expenses, which divides each payment at the point of purchase among the participants for that expense. When one person pays for an expense, everyone’s share is automatically charged to each member’s connected credit or debit account. Note that Cino does not break down invoices by line item to track exactly who ate what; it follows a split ratio (e.g., 50%-50%) as determined up front by the group.
Artificial Intelligence – Travelers may want to give AI a try, where as they start with a prompt asking the service to track and split group expenses, then enter the names of participants and related expenses to the prompt on an ongoing basis. AI tools can organize, categorize, and calculate shared expenses that users enter manually. Some AI assistants may also summarize spending trends or generate settlement calculations, but they generally do not automatically track purchases unless integrated with financial apps.
Given today’s higher prices, group travel is becoming more prevalent as a way to share the cost of vacation. According to a 2025 Zeta Global survey, 40 percent of travelers are going on trips with family while 21 percent opt to vacation with friends. Today’s new digital tools make it easy to track and share expenses so that you don’t strain relationships with travel companions.
Disclaimer
These articles provide general information on tax, accounting, and financial topics for small businesses and individuals. They are educational in nature and are not specific legal, accounting, financial, tax, or other professional advice, and should not be relied upon as such. This content was prepared by Service2Client and may have been reviewed or edited by the website owner for accuracy and compliance. Look for a trust mark below for verification details. No representation is made that any approach described will achieve a particular result, and no regulatory or professional body has reviewed or endorsed this content. Because each situation is different, readers should consult a qualified professional about their specific circumstances before acting. Images accompanying these articles are protected by copyright and may not be copied or reused.
With more than $57 trillion in mergers and acquisitions, according to the Institute for Mergers, Acquisitions & Alliances, understanding how the Exchange Ratio works is essential for businesses and investors to maximize these processes.
The ratio assesses how many shares the company that’s purchasing the takeover company must issue per share of the takeover business. Transactions that use shares for part or whole of the payment are able to leverage this integral benchmark. It’s important to keep in mind that the exchange ratio may provide parties helpful insight on transactions involving all or part equity, but it won’t be beneficial for all cash deals.
The formula to calculate the ratio is as follows:
Exchange Ratio = Offer Price for Target’s Shares / Acquirer’s Share Price
Looking at the acquiring firm’s and the target or acquired firm’s share prices illustrates the exchange ratio. If the target firm has 30,000 shares outstanding and trades at $34.60, and the acquiring firm offers to pay a 20 percent takeover, it results in a share price of $41.52 per share. The acquiring firm’s share price currently trades at $23.50.
Putting the formula into practice, it’s as follows:
= $41.52 / $23.50
= 1.77
Based on the resulting Exchange Ratio of 1.77, the acquiring firm must issue 1.77 shares of its equity for each share of the target firm it wants to acquire.
For transactions with different proportions of cash and stock, the percentage of stock is what’s factored into the exchange ratio. Deals conducted with 100 percent stock provide the most value to an exchange ratio.
Real World Example
If an acquiring business offers the acquisition target two of its shares for a single share of the acquired company, the deal can take the following circumstances. Before the deal announcement, the purchasing company’s shares might be trading at $20, with the target company’s shares trading at $30. With a 2-to-1 exchange ratio, the purchaser is bidding $40 for the seller’s share at $30.
After the deal announcement, there’s usually a valuation difference between buyer and seller due to the time value of money and risks. Risks include potentially being blocked by regulators, shareholder rejection or changing economic conditions. One important consideration is that merger arbitration may occur by investors when they try to get ahead of a deal ultimately completing before the uncertainty is removed.
If the deal ultimately closes, and investors get two buyer shares in exchange for one seller share and the acquiring company’s share increases to $37 from $30, investors who bet against the buyer’s stock via short-selling will be rewarded a difference of $3 per share (2 shares from the acquiring company 2 X $20 = $40 minus the $37 single share price of the target company). Investors who close out their short position will see the difference from the seller’s price for a profit. This tactic is frequently executed by opportunistic investors who have no direct interest in owning the equity, but only for a trade.
While each deal is different, understanding the process is essential to break down the internal details for all interested merger and acquisition parties.
Understanding the Exchange Ratio
August 1, 2026 · Blog, General Business News, Uncategorized
⏱ 3 min read
With more than $57 trillion in mergers and acquisitions, according to the Institute for Mergers, Acquisitions & Alliances, understanding how the Exchange Ratio works is essential for businesses and investors to maximize these processes.
The ratio assesses how many shares the company that’s purchasing the takeover company must issue per share of the takeover business. Transactions that use shares for part or whole of the payment are able to leverage this integral benchmark. It’s important to keep in mind that the exchange ratio may provide parties helpful insight on transactions involving all or part equity, but it won’t be beneficial for all cash deals.
The formula to calculate the ratio is as follows:
Exchange Ratio = Offer Price for Target’s Shares / Acquirer’s Share Price
Looking at the acquiring firm’s and the target or acquired firm’s share prices illustrates the exchange ratio. If the target firm has 30,000 shares outstanding and trades at $34.60, and the acquiring firm offers to pay a 20 percent takeover, it results in a share price of $41.52 per share. The acquiring firm’s share price currently trades at $23.50.
Putting the formula into practice, it’s as follows:
= $41.52 / $23.50
= 1.77
Based on the resulting Exchange Ratio of 1.77, the acquiring firm must issue 1.77 shares of its equity for each share of the target firm it wants to acquire.
For transactions with different proportions of cash and stock, the percentage of stock is what’s factored into the exchange ratio. Deals conducted with 100 percent stock provide the most value to an exchange ratio.
Real World Example
If an acquiring business offers the acquisition target two of its shares for a single share of the acquired company, the deal can take the following circumstances. Before the deal announcement, the purchasing company’s shares might be trading at $20, with the target company’s shares trading at $30. With a 2-to-1 exchange ratio, the purchaser is bidding $40 for the seller’s share at $30.
After the deal announcement, there’s usually a valuation difference between buyer and seller due to the time value of money and risks. Risks include potentially being blocked by regulators, shareholder rejection or changing economic conditions. One important consideration is that merger arbitration may occur by investors when they try to get ahead of a deal ultimately completing before the uncertainty is removed.
If the deal ultimately closes, and investors get two buyer shares in exchange for one seller share and the acquiring company’s share increases to $37 from $30, investors who bet against the buyer’s stock via short-selling will be rewarded a difference of $3 per share (2 shares from the acquiring company 2 X $20 = $40 minus the $37 single share price of the target company). Investors who close out their short position will see the difference from the seller’s price for a profit. This tactic is frequently executed by opportunistic investors who have no direct interest in owning the equity, but only for a trade.
While each deal is different, understanding the process is essential to break down the internal details for all interested merger and acquisition parties.
Disclaimer
These articles provide general information on tax, accounting, and financial topics for small businesses and individuals. They are educational in nature and are not specific legal, accounting, financial, tax, or other professional advice, and should not be relied upon as such. This content was prepared by Service2Client and may have been reviewed or edited by the website owner for accuracy and compliance. Look for a trust mark below for verification details. No representation is made that any approach described will achieve a particular result, and no regulatory or professional body has reviewed or endorsed this content. Because each situation is different, readers should consult a qualified professional about their specific circumstances before acting. Images accompanying these articles are protected by copyright and may not be copied or reused.
For the first time since 2022, the IRS is changing standard mileage rates in the middle of the tax year. If you track business, medical or moving miles, this matters. Starting July 1, 2026, the numbers go up, and your recordkeeping needs to get more precise.
What Changed and Why
The IRS bumped the business mileage rate from 72.5 cents to 76 cents per mile for travel on or after July 1, 2026. Medical and moving rates rose from 20.5 cents to 23.5 cents. The charitable rate stays put at 14 cents, where it has been stuck since 1998.
The trigger was fuel prices. When the IRS set the original 2026 rates back in December, gas was averaging about $2.89 per gallon nationally. By mid-July 2026, AAA reported the average had climbed to roughly $3.87, an increase of 34 percent. Much of that spike traces back to the war in Iran and uncertainty around oil production and shipping through the Strait of Hormuz.
The last time the IRS made a midyear adjustment was 2022, after Russia invaded Ukraine and gas prices surged past $5 per gallon in some markets.
Two Sets of Rates for One Year
This creates a split year for mileage calculations. Miles driven from January 1 through June 30 use the original rates. Miles driven on or after July 1 use the revised rates. If you drove 4,000 medical miles before July and another 4,000 after, you would calculate them separately: $820 for the first half at 20.5 cents, $940 for the second half at 23.5 cents.
The same logic applies to employer reimbursements. The new rates kick in only when both the expense and the reimbursement occur on or after July 1. Employers running accountable plans should review their policies to make sure they are applying the correct rate based on when the travel happened and when the payment goes out.
Why the Rates Differ by Category
The business rate is higher because it accounts for both fixed and variable costs of operating a vehicle: depreciation, insurance, maintenance, tires, gas and oil. Medical and moving rates cover only variable costs, which is why they sit lower.
The charitable rate is a different animal entirely. Congress set it by statute, and it has not budged in nearly three decades. Adjusted for inflation, 14 cents from 1998 would be closer to 29 cents today.
Who Can Actually Use These Rates
Here is where it gets narrower than many taxpayers expect. The Tax Cuts and Jobs Act eliminated the deduction for unreimbursed employee business expenses starting in 2018, and the One Big Beautiful Bill Act made that change permanent. Most employees cannot write off business mileage whether their employer reimburses them or not.
Moving expense deductions are similarly limited. Only active duty military members moving under orders for a permanent change of station qualify, along with certain intelligence community members under rules effective for 2026.
Charitable mileage requires itemizing, which means it only helps if your total deductions exceed the standard deduction of $16,100 for single filers or $32,200 for married couples filing jointly. Many taxpayers skip it.
Self-employed individuals and business owners get the most benefit from the business rate since they can still deduct qualifying mileage on Schedule C.
Recordkeeping Just Got Harder
Normally, tracking mileage means logging dates, destinations, miles driven, and business purpose. This year, you also need to note which side of July 1 the expense falls on. A mileage app can help, but a notebook or spreadsheet works, too.
If you use a vehicle exclusively for business, beginning and end-of-year odometer readings establish total mileage. Photos can serve as backup. If you mix business and personal use, your records need to clearly separate the two.
Conclusion
Gas prices forced the IRS’s hand, and now 2026 has two mileage rate regimes. The math is not complicated, but the documentation requirements are tighter than usual. Know when your miles were driven, keep clean records and make sure your employer’s reimbursement policies reflect the July 1 cutoff. The details matter this year more than most.
IRS Raises Mileage Rates Midyear: What You Need to Know
August 1, 2026 · Blog, Tax and Financial News, Uncategorized
⏱ 4 min read
For the first time since 2022, the IRS is changing standard mileage rates in the middle of the tax year. If you track business, medical or moving miles, this matters. Starting July 1, 2026, the numbers go up, and your recordkeeping needs to get more precise.
What Changed and Why
The IRS bumped the business mileage rate from 72.5 cents to 76 cents per mile for travel on or after July 1, 2026. Medical and moving rates rose from 20.5 cents to 23.5 cents. The charitable rate stays put at 14 cents, where it has been stuck since 1998.
The trigger was fuel prices. When the IRS set the original 2026 rates back in December, gas was averaging about $2.89 per gallon nationally. By mid-July 2026, AAA reported the average had climbed to roughly $3.87, an increase of 34 percent. Much of that spike traces back to the war in Iran and uncertainty around oil production and shipping through the Strait of Hormuz.
The last time the IRS made a midyear adjustment was 2022, after Russia invaded Ukraine and gas prices surged past $5 per gallon in some markets.
Two Sets of Rates for One Year
This creates a split year for mileage calculations. Miles driven from January 1 through June 30 use the original rates. Miles driven on or after July 1 use the revised rates. If you drove 4,000 medical miles before July and another 4,000 after, you would calculate them separately: $820 for the first half at 20.5 cents, $940 for the second half at 23.5 cents.
The same logic applies to employer reimbursements. The new rates kick in only when both the expense and the reimbursement occur on or after July 1. Employers running accountable plans should review their policies to make sure they are applying the correct rate based on when the travel happened and when the payment goes out.
Why the Rates Differ by Category
The business rate is higher because it accounts for both fixed and variable costs of operating a vehicle: depreciation, insurance, maintenance, tires, gas and oil. Medical and moving rates cover only variable costs, which is why they sit lower.
The charitable rate is a different animal entirely. Congress set it by statute, and it has not budged in nearly three decades. Adjusted for inflation, 14 cents from 1998 would be closer to 29 cents today.
Who Can Actually Use These Rates
Here is where it gets narrower than many taxpayers expect. The Tax Cuts and Jobs Act eliminated the deduction for unreimbursed employee business expenses starting in 2018, and the One Big Beautiful Bill Act made that change permanent. Most employees cannot write off business mileage whether their employer reimburses them or not.
Moving expense deductions are similarly limited. Only active duty military members moving under orders for a permanent change of station qualify, along with certain intelligence community members under rules effective for 2026.
Charitable mileage requires itemizing, which means it only helps if your total deductions exceed the standard deduction of $16,100 for single filers or $32,200 for married couples filing jointly. Many taxpayers skip it.
Self-employed individuals and business owners get the most benefit from the business rate since they can still deduct qualifying mileage on Schedule C.
Recordkeeping Just Got Harder
Normally, tracking mileage means logging dates, destinations, miles driven, and business purpose. This year, you also need to note which side of July 1 the expense falls on. A mileage app can help, but a notebook or spreadsheet works, too.
If you use a vehicle exclusively for business, beginning and end-of-year odometer readings establish total mileage. Photos can serve as backup. If you mix business and personal use, your records need to clearly separate the two.
Conclusion
Gas prices forced the IRS’s hand, and now 2026 has two mileage rate regimes. The math is not complicated, but the documentation requirements are tighter than usual. Know when your miles were driven, keep clean records and make sure your employer’s reimbursement policies reflect the July 1 cutoff. The details matter this year more than most.
Disclaimer
These articles provide general information on tax, accounting, and financial topics for small businesses and individuals. They are educational in nature and are not specific legal, accounting, financial, tax, or other professional advice, and should not be relied upon as such. This content was prepared by Service2Client and may have been reviewed or edited by the website owner for accuracy and compliance. Look for a trust mark below for verification details. No representation is made that any approach described will achieve a particular result, and no regulatory or professional body has reviewed or endorsed this content. Because each situation is different, readers should consult a qualified professional about their specific circumstances before acting. Images accompanying these articles are protected by copyright and may not be copied or reused.
The cost of streaming subscriptions is on the rise, and you have to ask: Are they really worth it? Especially when it’s summer, and you’re taking advantage of the beautiful weather. Here are some ways to entertain yourself, friends and the fam that are either no- or low-cost – and might be better than binging on yet another series.
Have ‘Zero Dollar’ days. Set aside one or two days a week where you don’t spend a cent. Make your lunch the day before. Cook dinner at home, and then end the day with a walk at a nearby park.
Plant a garden. All you need is a few seeds (or plants), a place to dig and you’re good to go. Best of all, it will keep you busy all summer long. It’s something, too, that you can do with friends and family. Can you say togetherness?
Practice plogging. What, what, what? Yes, plogging is a real word and a mash-up of a Swedish word, plocka, meaning “to pick,” and jogging. As you’re jogging, or even walking, pick up trash along the way. You’re not only helping your body but also bettering your community and the environment.
Visit free museums. If it’s just too hot to be outside, get some A/C and some culture – without parting with your moolah. Just Google “museums near me,” and you’ll be all set.
Play board games. Scrabble or Monopoly, anyone? What about Gin Rummy or Hearts? Make a light summer salad for dinner, gather with your buds and/or progeny, and have some fun.
Make your own popsicles. What a great money-saving hack. Buy a cheap popsicle mold at Walmart, your neighborhood home goods store, or online. Fill it up with yogurt, fruit, or anything else that sounds delish, freeze, and dig in. Here’s a list of recipes you can experiment with!
Start a book club. Books, remember those? Turn off the Netflix, go to the library or browse online, pick a book that looks good, and gather with friends and family. And bing bang boom, it’s a book club! Sometimes, theater of the mind is so much better than what’s on the idiot box.
Join a Buy Nothing group. This is a collection of people who believe in giving and sharing products instead of engaging in consumerism. With this, you will save money and meet new people. Check out the movement here.
Run through the sprinklers. If you don’t want to go to a pool or one’s not nearby, turn on the sprinklers, suit yourself and your kiddos up in swimsuits, and take off! It’s a quick way to cool down.
Go thrifting. This is something all the cool kids are doing – and have been for some time. Find out where your local second-hand shops are and dive in. You could find some designer gems for very little cash. And usually the stores have A/C, so this is yet another activity to beat the heat.
Stargaze. Wait until after sunset, grab a cool beverage and find a place where you can just sit and be amazed at the universe. If you look long enough, you’ll see shooting stars. After all, nature is one of the best free playgrounds we have.
These are just a few of the many things you can do to lower costs this summer. We’re not saying don’t watch TV, but just that there are so many other things to do that will bring you happiness – and on a budget.
July 1, 2026 · Blog, Tip of the Month, Uncategorized
⏱ 4 min read
The cost of streaming subscriptions is on the rise, and you have to ask: Are they really worth it? Especially when it’s summer, and you’re taking advantage of the beautiful weather. Here are some ways to entertain yourself, friends and the fam that are either no- or low-cost – and might be better than binging on yet another series.
Have ‘Zero Dollar’ days. Set aside one or two days a week where you don’t spend a cent. Make your lunch the day before. Cook dinner at home, and then end the day with a walk at a nearby park.
Plant a garden. All you need is a few seeds (or plants), a place to dig and you’re good to go. Best of all, it will keep you busy all summer long. It’s something, too, that you can do with friends and family. Can you say togetherness?
Practice plogging. What, what, what? Yes, plogging is a real word and a mash-up of a Swedish word, plocka, meaning “to pick,” and jogging. As you’re jogging, or even walking, pick up trash along the way. You’re not only helping your body but also bettering your community and the environment.
Visit free museums. If it’s just too hot to be outside, get some A/C and some culture – without parting with your moolah. Just Google “museums near me,” and you’ll be all set.
Play board games. Scrabble or Monopoly, anyone? What about Gin Rummy or Hearts? Make a light summer salad for dinner, gather with your buds and/or progeny, and have some fun.
Make your own popsicles. What a great money-saving hack. Buy a cheap popsicle mold at Walmart, your neighborhood home goods store, or online. Fill it up with yogurt, fruit, or anything else that sounds delish, freeze, and dig in. Here’s a list of recipes you can experiment with!
Start a book club. Books, remember those? Turn off the Netflix, go to the library or browse online, pick a book that looks good, and gather with friends and family. And bing bang boom, it’s a book club! Sometimes, theater of the mind is so much better than what’s on the idiot box.
Join a Buy Nothing group. This is a collection of people who believe in giving and sharing products instead of engaging in consumerism. With this, you will save money and meet new people. Check out the movement here.
Run through the sprinklers. If you don’t want to go to a pool or one’s not nearby, turn on the sprinklers, suit yourself and your kiddos up in swimsuits, and take off! It’s a quick way to cool down.
Go thrifting. This is something all the cool kids are doing – and have been for some time. Find out where your local second-hand shops are and dive in. You could find some designer gems for very little cash. And usually the stores have A/C, so this is yet another activity to beat the heat.
Stargaze. Wait until after sunset, grab a cool beverage and find a place where you can just sit and be amazed at the universe. If you look long enough, you’ll see shooting stars. After all, nature is one of the best free playgrounds we have.
These are just a few of the many things you can do to lower costs this summer. We’re not saying don’t watch TV, but just that there are so many other things to do that will bring you happiness – and on a budget.
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The cost of streaming subscriptions is on the rise, and you have to ask: Are they really worth it? Especially when it’s summer, and you’re taking advantage of the beautiful weather. Here are some ways to entertain yourself, friends and the fam that are either no- or low-cost – and might be better than binging on yet another series.