The Internal Revenue Service recently issued the 2020 optional standard mileage rates, used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. As of January 1, 2020, the standard mileage rates for the use of a vehicles is 57.5 cents per mile driven for business use, down a half-cent from the 2019 rate.
The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses.
For more information about standard mileage rates and tax implications, visit. www.irs.gov.