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IRS lowers business mileage deduction for 2020

Taxpayers have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Credit: Kichigin
(Credit: Getty Images)

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.

> Read more at the Denver Business Journal

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