IRS Announces Standard Mileage Rate for 2020

The Internal Revenue Service announced the 2020 optional standard mileage rate for calculating the deductible costs of operating an automobile for business purposes.

The Internal Revenue Service announced the 2020 optional standard mileage rate for calculating the deductible costs of operating an automobile for business purposes. Starting January 1, 2020, the standard mileage rate for the business use of a car, van, pickup, or panel truck is 57.5 cents per mile for business miles driven, down from 58 cents in 2019.

Under the Tax Cuts and Jobs Act, employees can no longer claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. However, if you are self-employed, you claim business mileage on Schedule C without itemizing your deductions.

The IRS also announced the 2020 standard mileage rate for vehicles driven for medical or moving purposes (17 cents per mile) and for vehicles driven for charitable purposes (14 cents per mile).

See the IRS website for more information.

Effective date: January 01, 2020