IRS Announces 2020 Standard Mileage Rates

Overview

On Dec. 31. 2019, the Internal Revenue Service (IRS) issued the 2020 optional standard mileage rates, which are used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

The 2020 standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 57.5 cents per mile driven for business use (down from 58 cents in 2019);
• 17 cents per mile driven for medical or moving purposes (down from 20 cents in 2019); and
• 14 cents per mile driven in service of charitable organizations (unchanged).

Action Steps

The new rates begin on January 1, 2020. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Get Assistance

For help in keeping up to date on compliance issues affecting your business as well as business consulting, contact Ollis/Akers/Arney.