The Internal Revenue Service has announced new mileage rates for 2020 for use in calculating reimbursements or deductions for tax purposes:

• Business use: 57.5 cents a mile, down from 58 cents a mile in 2019
• Medical use: 17 cents a mile, down from 20 cents a mile in 2019
• Moving use: 17 cents a mile, down from 20 cents a mile in 2019
• Charitable use: 14 cents a mile, the same as in 2019

Additionally, the standard vehicle cost, used to calculate FAVR (Fixed and Variable Rate) programs, may not exceed $50,400, the same as in 2019.

To read more, IRS Notice 2019-02 may be found on the IRS website: irs.gov/pub/irs-drop/n-20-05.pdf.

Let’s connect and we’ll show you how a FAVR (Fixed and Variable Rate) plan can reduce cost when compared to the IRS rate for business use.

About the Author

Jim Doherty

Jim Doherty has developed FAVR plans with many highly visible companies large and small, and has routinely documented significant program savings, heightened driver acceptance and satisfaction, and reduced fleet liability with greater control and administrative efficiency. Let's Connect