Standard Mileage Rates for 2020
The IRS announced a decrease in the optional standard mileage rates for 2020 (effective for expenses paid or incurred on or after January 1). Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.
The College has adopted the optional standard mileage rates for the use of a car (also vans, pickups or panel trucks) as follows:
57.5 cents per mile for business miles driven
17 cents per mile driven for medical or moving purposes*
14 cents per mile driven in service of charitable organizations**
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile, including depreciation, insurance, repairs, tires, maintenance, gas and oil.
*The rate for medical and moving purposes is based on the variable costs, such as gas and oil.
**The charitable rate is set by law.
For more information see the IRS News Release.