IRS Issues New Mileage Rates for 2020

IRS Issues New Mileage Rates for 2020

It’s a new year so that means it’s time for the IRS to issue new mileage rates. These are the optional standard mileage rates used to “calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.”

The 2020 mileage rates are:

  • 5 cents per mile driven for business use (a half of a cent decrease from the 2019 rate)
  • 17 cents per mile driven for medical or moving purposes (a three-cent reduction from the 2019 rate)
  • 14 cents per mile driven in service of charitable organizations (no change)

The IRS website notes that “under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, except members of the Armed Forces on active duty moving under orders to a permanent change of station. For more details, see Rev. Proc. 2019-46 (PDF).”

Questions on this or any other payroll or accounting matter? Call 215-723-4881 or contact us online.

Leave a Reply

Your email address will not be published. Required fields are marked *