Commentary

IRS Mileage Allowance for 2020

The IRS has announced that the mileage allowance for business travel will decrease to 57.5¢ per mile (from 58¢) for travel on and after January 1, 2020.  The per mile allowance for travel to get medical care (deductible as a medical expense) will decrease to 17¢ per mile (from 20ȼ), again for travel on or after January 1.  The allowance for charitable travel (deductible as a charitable contribution) is set at 14¢ per mile by statute and will not change.

As part of its “tax simplification,” the Tax Cut and Jobs Act enacted in 2017 eliminated any deduction for job related moving expenses (and requires that employer payment of or reimbursement for moving expenses be included in the employee’s compensation).

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