By Payroll and Entitlements Editorial Staff
The IRS issued the 2020 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on January 1, 2020, the standard mileage rates for the use of a car, van, pickup or panel truck will be: (1) 57.5 cents per mile for business miles driven, down from 58 cents in 2019, (2) 17 cents per mile driven for medical or moving purposes, down from 20 cents per mile in 2019, and (3) 14 cents per mile driven in service of charitable organizations (the same as last year). Besides the standard mileage rates, the notice also includes the maximum standard automobile cost ($50,400 for automobiles (including trucks and vans) that may be used in computing an allowance under a fixed and variable rate plan (FAVR). (IR-2019-215, December 31, 2019; IRS Notice 2020-05.)
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