IRS Releases Standard Mileage Rates for 2024
Due to recent increases in the price of fuel, the IRS has increased the optional standard mileage rates for computing the deductible costs of operating an automobile for business purposes for 2024. However, the standard mileage rates for medical and moving expense purposes are reduced for 2024. The standard mileage rate for computing the deductible costs of operating an automobile for charitable purposes is set by statute and remains unchanged.
Business Rates
Up from 65.5 cents from 2023, 67 cents per mile may be deducted if an auto is used for business purposes. If you are an employee, your employer can reimburse you for your business travel expenses using the standard mileage rate. However, if you are an employee and your employer does not reimburse you for your business travel expenses, you cannot currently deduct your unreimbursed travel expenses as miscellaneous itemized deductions.
Charitable Rates
14 cents per mile, the same as for 2023, may be deducted if an auto is used to provide services to a charitable organization if you itemize deductions on your income tax return. Your charitable deduction may be limited to certain percentages of your adjusted gross income, depending on the type of charity.
Medical Rates
Down one cent since 2023, 21 cents per mile may be deducted if an auto is used to obtain medical care, or for other deductible medical reasons, if you itemize deductions on your income tax return. You can deduct only the part of your medical and dental expenses that exceeds 7.5% of the amount of your adjusted gross income.
Moving Expense Rates
Also down one cent from 2023, 21 cents per mile may be deducted if an auto is used by a member of the Armed Forces on active duty to move, pursuant to a military order, to a permanent change of station, unless such expenses are reimbursed. The deduction for moving expenses is not currently available for other taxpayers.
Wondering how IRS Mileage Rates can affect you? Reach out to a financial professional.
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
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This article was prepared by Broadridge.
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