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IRS issues standard mileage rates for 2024; mileage rate increases to 67 cents a mile – Salina Post

Internal Revenue Service

WASHINGTON — The Internal Revenue Service today announced the 2024 optional standard mileage rate used to calculate deductible expenses when operating a motor vehicle for business, charitable, medical, relocation, and other purposes.

From January 1, 2024, the standard mileage rates for motor vehicle (also including vans, pickups, and panel trucks) use will be:

  1. For business use, the rate is 67 cents per mile, an increase of 1.5 cents from 2023.
  2. For eligible active-duty military personnel, driving for medical or transportation purposes will cost 21 cents per mile, a decrease of 1 cent starting in 2023.
  3. 14 cents per mile driven in service to charity. This rate is set by law and will remain unchanged after 2023.

These charges apply to electric and hybrid electric vehicles, gasoline and diesel vehicles.

Standard mileage rates for business use are calculated by examining the fixed and variable costs of operating a vehicle each year. Fees for medical and moving purposes are based on variable costs.

It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim various itemized deductions for unreimbursed employee travel expenses. Additionally, taxpayers cannot claim a deduction for moving expenses unless they are active duty military personnel who are moving pursuant to a permanent change of station order. For more information, see Moving expenses for military personnel.

Taxpayers always have the option of calculating the actual cost of using their vehicle rather than using standard mileage rates.

Taxpayers can use the standard mileage rate, but typically must elect to use the standard mileage rate in the first year the vehicle is available for business use. You can then choose between standard mileage charges or actual cost in later years. If you select Standard Mileage Rate, the leased vehicle must use the Standard Mileage Rate method for the entire lease term (including renewals).

August 2024 Notice This includes the optional 2024 standard mileage rate and maximum vehicle cost used to calculate benefits under fixed variable rate (FAVR) plans. Additionally, this notice provides the maximum fair market value for employer-provided motor vehicles first made available to employees for personal use in calendar year 2024, and employers must comply with the Vehicle Average Valuation Rule or Vehicle 1 You can use cents per mile valuation rules. .

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