The Internal Revenue Service has lowered the federal mileage rate deduction for business use of a vehicle.
For 2020, the IRS set the deduction rate at 57.5 cents per mile, down a half-cent from the rate of 58 cents per mile in 2019.
Last year, the IRS hiked the rate by 3.5 cents from 2018 to a level not seen since the second half of 2008, when the IRS temporarily raised the rate from 50.5 cents to 58.5 cents after gas prices took a roller coaster ride as the recession kicked in.
The new rate for operating a vehicle for medical or moving purposes has been lowered by three cents to 17 cents per mile, while the rate for operating a vehicle for charitable purposes remains the same as in 2019 at 14 cents per mile.
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