If you operate a Non-Emergency Medical Transportation (NEMT) business, you already know how fast vehicle expenses can add up — fuel, maintenance, insurance, and driver costs all cut into your bottom line. But when it comes to tax season, how you deduct those vehicle expenses can make a big difference in how much you owe or get back.

At Jackson Ilyas Tax & Financial Solutions (JITFS), we specialize in helping NEMT owners like you understand the difference between standard mileage and itemized vehicle deductions, so you can keep more of what you earn — while staying fully compliant with IRS rules.

🚘 2025 Standard Mileage Rate: $0.70 per Mile

For tax year 2025, the IRS standard mileage rate is 70 cents per mile.
That means if you choose to use the standard mileage deduction, you can deduct $0.70 for every business mile driven.

This method simplifies recordkeeping — you only need to track your business miles and maintain a mileage log (manual or digital). The rate covers all vehicle costs like gas, maintenance, depreciation, and insurance.

✅ Best for:

Small NEMT owners with fewer than 5 vehicles

Businesses that lease or use personal vehicles for business

Those who prefer a simple, flat-rate deduction

🧾 Itemizing Vehicle Expenses

If you operate five or more vehicles at the same time, the IRS requires you to itemize your vehicle expenses instead of using the standard mileage rate.

That means you’ll need to track and deduct actual expenses, including:

Fuel and oil

Repairs and maintenance

Insurance

Registration and licensing

Lease or loan interest

Depreciation

Itemizing can lead to larger deductions for high-mileage fleets, but it requires detailed bookkeeping and consistent documentation — something our firm can help you manage efficiently.

✅ Best for:

Fleet operators with 5+ vehicles

NEMT businesses with company-owned vehicles

Businesses that want to maximize every legitimate deduction

🧮 Which Method Is Better for You?

There’s no one-size-fits-all answer — it depends on your operation’s size, vehicle ownership, and recordkeeping system.

At JITFS, we analyze your mileage logs, expense reports, and fleet structure to determine which deduction method gives you the biggest tax advantage. Whether you’re just starting out or managing a growing NEMT fleet, we’ll make sure your books are clean, your records are IRS-ready, and your taxes are minimized.

📊 Partner with a NEMT Tax Specialist

NEMT owners face unique challenges — from driver payroll to compliance and Medicaid reimbursements — and your tax strategy should reflect that.

At Jackson Ilyas Tax & Financial Solutions, we provide:

Full bookkeeping & tax filing for NEMT businesses

Mileage and expense tracking setup

Fleet deduction planning

IRS audit support

We’re BBB accredited, located at 10399 Old Placerville Rd, Sacramento, CA (inside the BBB building).

📞 Call or text: 916-767-6182
📧 Email: jitfsc@gmail.com

🌐 Visit: www.jitfs.store

Let’s make sure your NEMT business runs as efficiently on paper as it does on the road.