The Internal Revenue Service has announced new mileage rates for 2024 for use in calculating reimbursements or deductions for tax purposes:
- Business use: 67.0 cents a mile, up from 65.5 cents a mile from the 2023 rate.
- Medical use: 21 cents a mile, down from 22 cents a mile in 2023.
- Moving use: 21 cents a mile, down from 22 cents a mile in 2023.
- Charitable use: 14 cents a mile, the same as in 2023.
Additionally, the standard vehicle cost used to calculate FAVR (Fixed and Variable Rate) programs may not exceed $62,000, up from $60,800 in 2023.
To read more, IRS Notice 2024-08 may be found on the IRS website here.
Is your company seeking a more accurate vehicle reimbursement solution than the IRS-standard mileage rate? Is the IRS-standard mileage rate creating unpredictable cashflows and becoming too expensive for your company right now? 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.
AutoReimbursement.com’s Vehicle Reimbursement Program Comparison Guide explains alternative reimbursement programs, like a Fixed and Variable Rate Program, and how it can provide cost savings to your company as well as benefit your drivers.