2020 Standard Mileage Rates: What You Need to Know
The IRS released optional standard mileage rates for 2020, which may be used to calculate deductible costs for operating an automobile. This includes cars, vans, pickup trucks and panel trucks.
Beginning January 1, 2020, the standard mileage rates are:
- 5 cents per mile for business use
- 17 cents per mile for medical use
- 14 cents per mile for charitable use
These rates may be used by taxpayers instead of their actual expenses of their vehicles. Taxpayers can’t claim a miscellaneous itemized deduction for unreimbursed employee travel expenses.
Fixed and Variable Rate Allowance for 2020
Employers can reimburse employees using their own vehicles for business with the Fixed and Variable Rate Allowance (FAVR). The maximum standard automobile cost for vehicles in service after 2019:
- $50,400 for passenger automobiles, trucks and vans
Mileage Rate for Moving Expenses in 2020
The standard mileage rate for moving expenses is 17 cents per mile. This only applies to taxpayers that are members of the Armed Forces on active duty and moving under orders to a permanent change of station.
Do you need help determining the tax deductions for your organization? Contact us today to speak with one of our tax professionals.
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