Mileage Reimbursement Rate

The IRS released Notice 2020-05 identifying the optional standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes.

The business standard mileage rate for transportation or travel expenses is 57.5 cents per mile for all miles of business use (down half of a cent from 2019). The standard mileage rate is 17 cents per mile for use of an automobile (a) for medical care as described in Code section 213 or (b) as part of a move for which the expenses are deductible under Code section 217(g) (a 3 cent decrease from 2019).

Health flexible spending account plans, health reimbursement plans and health savings accounts that allow reimbursement of travel to and from medical appointments should take note of the new reimbursement rate.

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