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.
2020 Standard Mileage Rates
Taxpayers may use the standard mileage rates, instead of their actual expenses, to calculate certain deductions. The standard mileage rates for 2020 are:
- 57.5 cents per mile for business uses;
- 17 cents per mile for medical uses; and
- 14 cents per mile for charitable uses.
2020 FAVR Allowance
For purposes of the fixed and variable rate (FAVR) allowance, the maximum standard automobile cost for vehicles places in service after 2019 is:
- $50,400 for passenger automobiles, and
- $50,400 for trucks and vans.
Employers can use a FAVR allowance to reimburse employees who use their own vehicles for the employer’s business.
2020 Mileage Rate for Moving Expenses
The standard mileage rate for the moving expense deduction is 17 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 an military order and incident to a permanent change of station.
The Tax Cuts and Jobs Act of 2017 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, and
- performing artists with relatively low incomes.
Notice 2019-2, I.R.B. 2019-2, 281 is superseded.