In December 2019, the IRS released the 2020 optional standard mileage rates to be used by taxpayers to compute deductible costs of operating an automobile for business, medical, and charitable purposes. These rates became effective January 1, 2020.
Business Mileage Rate
The standard mileage rate for business mileage will be 57.5 cents per mile, decreased by a half a cent from the 2019 rate.
It is important to note that although the optional rate is still currently used, it does not apply to unreimbursed employee travel expenses, which used to be allowed as a miscellaneous itemized deduction. Under the Tax Cuts & Jobs Act, miscellaneous itemized deductions can no longer be claimed. This suspension applies to taxable years beginning after December 31, 2017 and before January 1, 2026. The standard mileage will still be available to self-employed individuals.
Medical and Moving Mileage Rate
The standard mileage rate for use of an automobile associated with medical care will be 17 cents per mile, decreased by three cents from the 2019 rate.
The standard mileage rate, associated with a move deductible under IRC 217, is no longer available with the exception of moves for active members of the Armed Forces pursuant to a military order and incident to a permanent change of station.
Charitable Mileage Rate
The standard mileage rate for charitable purposes remains at 14 cents.