Mileage Rate Drops by Half-Cent

The Internal Revenue Service has issued the 2020 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business.

The standard mileage rates for the use of a car, van, pickup truck, or panel truck is 57.5 cents per mile driven for business use, which is down a half of a cent from the 2019.

Under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for employee travel expenses that are not reimbursed. The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile.

Taxpayers have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Source: IRS