Chances are, you’re celebrating today’s lower gas prices. AAA reports that the national average price of gas is $2.60, the lowest since December 2009. The result: an estimated $70 billion in direct savings for U.S. consumers over the next 12 months. At previous prices, the average American was spending about $2,600 a year on gasoline, so the 20% price decline would result in $520 more to save or spend.
It gets better. Even though gas prices (and, therefore, the cost of driving) have plummeted, the Internal Revenue Service is raising the standard mileage rates that people can deduct on their tax return for business travel, from 56 cents in 2014 to 57.5 cents per business mile driven next year.