Mileage Rates for 2020

The New Year is here and already we can’t believe how fast it is going! We wanted to take a moment to share with you the latest mileage rates for 2020. These rates went into effect January 1, 2020 and are important for you to know if you keep track of your mileage.

If you’re wondering what mileage you may record and deduct on your taxes, this includes business, medical, or charitable miles. Below are the specifics on what can be included:

  • Business: Although driving to and from work does not qualify, driving to customers or to different locations for meetings does qualify.
  • Medical: There are many different types of medical travel that may count toward a deduction. For more information, don’t hesitate to give us a call.
  • Charitable Work: If you volunteer for a non-profit, you can deduct the miles you drive to and from the organization’s location, as well as parking and tolls. Please keep in mind that mileage for charitable work only qualifies if the charity is registered as a tax-exempt organization. Find out if the charity you volunteer at qualifies.

The below rates are determined through a study that includes the fixed and variable costs of operating a vehicle.

Below are the new 2020 rates:

  • For business travel, you can deduct 57.5 cents for every mile driven. This is a 0.5 cent decrease from the previous rate.
  • For medical or moving purposes, you can deduct 17 cents per mile driven. This is down 3 cents from the previous rate.
  • For charitable organization travel, the rate remains the same, at 14 cents per mile driven.

As a reminder, employees can no longer claim a miscellaneous itemized deduction for any unreimbursed business travel expenses. Also, moving expenses can only be deducted by members of the Armed Forces who are on active duty, provided the expenses relate to orders to a permanent change of station.

If you have any questions in regards to mileage and what qualifies, don’t hesitate to reach out. We are here to answer any of your questions.

On another note…

The 2019 tax filing season opens January 27, 2020 and ends April 15, 2020. If you are looking for professional help with your business or personal taxes, contact us today to schedule your appointment.

Ryder & Company is located in West Lawn, PA and offers a variety of accounting services, part-time CFO services, payroll preparation, and much more! We also offer tax preparation for individuals, as well as businesses and nonprofit entities. We assist many individuals and businesses in and around Wyomissing, Exeter, and Reading.

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