2020 IRS Mileage Reimbursement Rates
What are the 2020 IRS mileage reimbursement rates?
Many professionals that take the standard mileage rate tax deduction are probably wondering what amounts the IRS has set for the 2020 IRS mileage reimbursement rates.
Please note that the IRS has not announced the standard mileage rate amounts for 2020. This article will be updated when the IRS makes the announcement. In the meantime, the 2019 standard mileage reimbursement rates are:
Business: 58 cents
Charitable: 14 cents
Moving: 20 cents
Who can take the standard mileage rate deduction?
In most cases, you can deduct the standard mileage rate amount for any work mile driven that is not defined as a commuting mile. These drives include drives for the following reason:
- Business meals and entertainment
- Customer visits
- Airport / Travel
- Travel between offices (that are different from a regular work location)
- Temporary job sites
- Errands / supplies
- Odd jobs
In regards to commuting miles, commuting is defined as miles driven to and from a regular place of work. Please review the following post for more information about what defines ‘commuting’, (insert post link here). Further, for those that are temporary
Benefits of taking the standard mileage deduction
Less Expenses to Track
The alternative to using the 2020 IRS standard mileage reimbursement rates is to itemize each tax deductible car expense. For some this is more time consuming and does not maximize their tax deductions. However, for others, this itemized method might be more beneficial.
It’s more convenient in many cases to have one, per-mile, amount to use to calculate business-use car tax deductions.
Disadvantages of using the standard mileage rate
Depending on your circumstances, you might realize more tax deduction using the Actual Car Expense method. Please review the following article for more details about how to itemized expense car expenses using the IRS Actual Car Expense method, How to Maximize Business Use Car Tax Deductions.
Reasons why the IRS sets these rates
- To give the self employed the convenience of a rate that they can use to deduct from their taxes versus itemizing every expense. This rate has been calculated by taking into consideration current economic conditions, inflation, gas prices, and other economic factors by professionals.
- To provide employers with a minimum reimbursement rate that they must use to reimburse employees for using their personal car for work use. Employers often reimburse employees and contractors at a rate higher than the standard rate specified by the IRS.
How to track mileage deductions with 2020 IRS mileage reimbursement rates
Use a mobile app like Falcon Expenses to conveniently track and calculate 2020 IRS mileage reimbursement rates. Falcon Expenses allows you to log your mileage expenses while on the go. Therefore, never forget an expense again, and maximize your tax deduction. Falcon Expenses offers three different ways to track mileage expenses.
- Odometer log. Enter the start and end odometer readings of a trip, Falcon Expenses calculates the miles driven and the expense reimbursement amount based on the custom reimbursement rate set in the app. Check out this article for more information on this feature and its benefits, Falcon Expenses Odometer Log Feature.
- Start and end addresses. Enter the start and end address of the tax deductible commute or transportation, Falcon Expenses will calculate the miles of the driving distance and the expense reimbursement amount. Check out this article for more information on this feature and its benefits, Falcon Expenses Addresses Feature.
- GPS mileage tracker. Use an integrated GPS tracker to track tax deductible business transportation miles as the miles are driven. Falcon Expenses will calculate the deductible mileage expense amount for your when the trip is complete. Check out this article for more information on this feature and its benefits, Falcon Expenses GPS Tracker.
Falcon Expenses also offers other features such as a receipt tracker and scanner, a time logger. Many of these features come in handy if you are using the Actual Car Expense method for your transportation expense deductions. Further, after all expenses are captured and safely stored in Falcon quickly organize them into reports. Then, export expense reports from your phone in PDF or spreadsheet format. Basically, Falcon Expenses has everything for your expense tracking and reporting needs.
About Falcon Expenses
Falcon Expenses is an iOS solution for expense tracking and management. Scan receipts, we type merchant, date and amount, auto-track mileage expenses via GPS and log billable hours with an integrated timer. Quickly organize expenses by time period, project or client and easily prepare reports for email to anyone in PDF or spreadsheet formats, all from your phone. Use for reimbursements, taxes, record keeping or invoicing. Falcon Expenses is great for professionals, freelancers, realtors, business travelers, truckers and more. Find out more, here.