Death and taxes are the two sure things in life. There isn't much you can do about death, but tax deductions are a powerful tool in limiting the pain of paying your taxes. This is particularly true for tax deductions that increase every year.

Of all the deductions that go up and down each year in value, the one you can claim for mileage is the biggie. It is based on a variety of factors including gas prices projected for the year. With oil near $100 a barrel, the deduction is up.

The mileage deduction is actually three in one. If you incur mileage in your car for a business purpose, you can get a deduction. Most people know about this deduction, but there are two other facets.

If you help out a charity and do any driving when doing so, you can claim a milegage deduction of those miles. You can also claim a mileage deduction for certain miles incurred during moves or medical situations.

The exact cents per mile you can deduct for each of these is recalibrated each year by the IRS. The agency has just kicked out the figures for the 2008 year and the business mileage rate has gone up yet again.

For the first time ever, the rate for calculating the business mileage deduction has topped 50 cents. It is now 50.5. If you drive 1,000 miles on business in 2008, you can claim a deduction of $505, which isn't to bad at all.

You would think the moving, medical and charitable rates would also increase. Alas, this is tax where common sense is only a rumor. For 2008, the charitable rate is the same at 14 cents and moving and medical actually drops to 19 cents a mile.

Now for your disclaimer. There are tests that must be met before claiming the above deductions. Make sure you know them and can pass them. Also, keep a booklet of your mileage so the IRS has something to read if it asks for it.