The Internal Revenue Service (IRS) issued 2020 federal mileage reimbursement rates that should be used to calculate costs for operating vehicles for business, charitable, medical or moving purposes. In summary, the business mileage rate decreased one half of a cent for business travel and three cents for medical and certain moving expenses from 2019.
2020 IRS Mileage Reimbursement Rates
Beginning January 1, 2020, standard mileage rates for the use of a car, van, pickups or panel trucks will be:
- 57.5¢ per mile driven for business (down from 58¢ in 2019)
- 17¢ per mile driven for medical or moving purposes (down from 20¢ in 2019)
- 14¢ per mile driven in service of charitable organizations (same rate as 2019)
The mileage rates above can be used to calculate how much employers should reimburse employees who use their own cars for business purposes. Taxpayers always have the option to calculate the actual costs of using their vehicle, instead of using the standard mileage rates. For more information, please refer to the recent IRS news release.
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