The Internal Revenue Service (IRS) has issued the 2020 standard mileage rates. Beginning on January 1, 2020, the standard mileage rates for the use of a car, van, pickup or panel truck will be:
- 57.5 cents/mile for business miles driven (down from 58 cents in 2019)
- 17 cents/mile driven for medical or moving purposes (down from 20 cents in 2019)
- 14 cents/mile driven in service of charitable organizations (currently fixed by Congress)
Remember that, following tax reform, taxpayers can no longer claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. That deduction was eliminated from Schedule A alongside similar deductions like the home office deduction. This does not affect any deductions that are correctly claimed on a Schedule C for the self-employed, freelancers, and independent contractors.
Similarly, most taxpayers can no longer claim a deduction for moving expenses. However, an exception applies to members of the Armed Forces on active duty moving under orders to a permanent change of station.
If these rates don’t adequately reflect your costs, you have the option of deducting actual expenses rather than using the standard mileage rates. That involves a lot more work, so please reach out for assistance.
**Note that these are the rates for the 2020 tax year (for the return you'll file in 2021). You’ll use the 2019 standard mileage rates for the tax return that you'll submit this year.
