Standard Mileage Rates for 2020

January 29, 2020

 

The IRS has released the optional standard mileage rates for 2020. Most taxpayers may use these rates to compute deductible costs of operating vehicles for business, medical, and charitable purposes.

Some members of the military may also use these rates to compute their moving expense deductions.

The standard mileage rates for 2019 are as follows:

  • 5 cents per mile driven for business use, down one half of a cent from the rate for 2019,
  • 17 cents per mile driven for medical or moving purposes, down three cents from the rate for 2019, and
  • 14 cents per mile driven in service of charitable organizations.

2020 Mileage Rate for Moving Expenses

The standard mileage rate for the moving expense deduction is 20 cents per mile. To claim this deduction, the taxpayer must be: a member of the Armed Forces of the United States, on active military duty, and moving under a military order and incident to a permanent change of station.

The Tax Cuts and Jobs act suspended the moving expense deduction for all other taxpayers until 2026.

Unreimbursed Employee Travel Expenses

For most taxpayers, the Tax Cuts and Jobs act suspended the miscellaneous itemized deduction for unreimbursed employee travel expenses. However, certain taxpayers may still claim an above-the-line deduction for these expenses. These taxpayers include:

  • Members of a reserve component of the U.S. Armed Forces
  • State or local government officials paid on a fee basis
  • Performing artists with relatively low incomes

For additional information on 2020 optional standard mileage rates, please click here: https://www.irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2020 . As always, if you have any questions or concerns , please do not hesitate to contact Bederson. We are at your service.