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.
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