2020 IRS Mileage Reimbursement Rates
Table of Contents
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.
This post was updated on Jan 1st, 2020 to include the 2020 mileage reimbursement rates that were announced by the IRS on Jan 1st, 2020.
The 2020 Standard Mileage Reimbursement Rates are as follows:
Business: 57.5 cents per mile (down from 58 cents in 2019)
Charitable: 17 cents per mile (down from 20 cents in 2019)
Moving: 20 cents per mile (currently fixed by congress)
Check out the link below to read the original announcement from the IRS:
https://www.irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2020
Learn how you can effortlessly track your mileage expenses with Falcon Expenses mobile solution for mileage expense tracking.
Download Falcon Expenses
Falcon Expenses is free to download. If you’re on a desktop it’s best to use your iPhone and search for Falcon Expenses on the app store.
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
Fewer 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.
More Convenient
It’s more convenient in many cases to have one, per-mile, amount to use to calculate business-use car tax deductions.
Learn how you can effortlessly use the Standard Mileage Rate method to track your mileage expenses with Falcon Expenses mobile solution for mileage expense tracking.
Download Falcon Expenses
Falcon Expenses is free to download. If you’re on a desktop it’s best to use your iPhone and search for Falcon Expenses on the app store.
Disadvantages of using the standard mileage rate
Depending on your circumstances, you might realize more tax deductions using the Actual Car Expense method. Please review the following article for more details about how to itemize 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, Falcon Expenses Odometer Log Feature. - Start and End Trip 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, 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 automatically calculates the deductible mileage expense amount when the trip is complete.
Check out this article for more information, Falcon Expenses GPS Tracker.
Other Expense Tracking Solutions
Falcon Expenses offers other features such as a receipt scanner and time tracker. Many of these features come in handy if you’re using the Actual Car Expense method for your transportation expense deductions. Further, expenses are captured and safely stored in Falcon. Late quickly organize expenses into IRS compliant 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.
Please check out the following articles for more information about Falcon Expenses features and services:
- How to Scan and Manage Receipts with Falcon Expenses
- Falcon Expenses Expense Report Template & What Expense Reports Look Like
- What is Included in Falcon Expenses Mileage Expense Log
About Falcon Expenses
Falcon Expenses is a top-rated expense and mileage tracker app for self-employed and small businesses to track expenses and tax deductions. Falcon customers record $6,600, on average, in annual tax deductions. Get started today. The longer you wait, the more tax deductions you miss.
Automatically track mileage expenses and expenses, keep an odometer log, receipt vault and log billable hours. Quickly organize expenses by time period, project, or client. Easily create expense reports and mileage logs with your expense data for email to anyone in PDF or spreadsheet formats, all from your phone. Falcon’s expense report template is IRS compliant. Use for keeping track of tax deductions, reimbursements, taxes, record keeping, and more. Falcon Expenses is great for self-employed, freelancers, realtors, delivery drivers, couriers, business travelers, truckers, and more.
Was this article helpful?
We are a team of writers and contributors with a passion for creating valuable content for small business owners, self-employed, entrepreneurs, and more.
Feel free to reach out to use as support@falconexpenses.com
