2020 Standard Mileage Rates

The standard mileage rates for business use of a vehicle decreased slightly in 2020.  The rate for 2020 is 57.5 cents per mile in 2020.  Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile.

Even though the Tax Cuts and Jobs Act suspended the miscellaneous itemized deduction for unreimbursed employee business expenses, self-employed taxpayers can deduct automobile expenses if they qualify as ordinary and necessary business expenses.

The rate for service to a charitable organization is unchanged, set by statute at 14 cents per mile.

Posted in IRS, Taxes