ARTICLE
On December 14, the IRS announced that beginning on Jan. 1, 2024, the standard mileage rate will increase for the use of a car, van, pickup or panel truck. These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles. The new rates are as follows: 67 cents per mile for business miles driven 22 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces 14 cents per mile driven in service of charitable organizations The business mileage rate increased by 1.5 cents from the 2023 rates, while the medical and moving expense rate decreased one cent from 2023. The charitable rate is set by statute and remains unchanged. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs. It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
On December 14, the IRS announced that beginning on Jan. 1, 2024, the standard mileage rate will increase for the use of a car, van, pickup or panel truck. These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles. The new rates are as follows:
The business mileage rate increased by 1.5 cents from the 2023 rates, while the medical and moving expense rate decreased one cent from 2023. The charitable rate is set by statute and remains unchanged. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs. It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.