In December 2020, the Internal Revenue Service issued optional standard mileage rates which went into force on the 1st January 2020. The IRS mileage rates 2020 are to be used to calculate the deductible costs related to operating an automobile for medical, business, charitable, or even moving purposes.
The rates apply to both usage of cars, vans, pickups and panel trucks. For those who wondering what the difference in the rates for business and medical or moving purposes may be, this article has it all and all you need is to continue reading. If you use your cars, vans, pickups and panel trucks for different purposes, you may consider keeping all records since they are useful when calculating the above.
Standard IRS mileage rates 2020
- 58 cents per mile driven for business use,
- 20 cents per mile driven for medical or moving purposes.
- 14 cents per mile driven in service of charitable organizations.
What are the changes?
For those who use their cars for business, the new rates saw a 3.5 cents increase from the 54.5 cents for the ended 2020. For medical and moving purposes, there was a 2 cents increase from the rate for 2020 making it 20 cents from 18. And for charitable organizations services, it’s 14 cents per mile.
Want to learn more about this? You can check IRS post about the same so as to learn the details.
Also note that under the Tax Cuts and Jobs Act, taxpayers can no longer claim a miscellaneous deduction for unreimbursed employee travel expenses and moving expenses, except members of the Armed Forces on active duty.