How Do You Calculate Mileage Rate for 2020

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2020 IRS Mileage Reimbursement Calculator

Business (57.5 cents/mile) Medical or Moving (17 cents/mile) Charitable (14 cents/mile)

Result:

function calculateMileage2020() { var miles = document.getElementById("milesDriven").value; var rate = document.getElementById("mileageType").value; var resultDiv = document.getElementById("mileageResult"); var resultValue = document.getElementById("reimbursementValue"); var detailText = document.getElementById("calculationDetails"); if (miles === "" || miles <= 0) { alert("Please enter a valid number of miles."); return; } var totalReimbursement = parseFloat(miles) * parseFloat(rate); resultValue.innerText = "$" + totalReimbursement.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); detailText.innerText = "Calculation: " + miles + " miles x $" + rate + " per mile"; resultDiv.style.display = "block"; }

How to Calculate Mileage Rate for 2020

Calculating your mileage deduction or reimbursement for the 2020 tax year requires using the specific standard mileage rates issued by the IRS. These rates were slightly lower than the previous year due to fluctuations in fuel costs and vehicle operating expenses.

Official 2020 IRS Standard Mileage Rates

For the tax year 2020 (January 1st through December 31st), the IRS established three distinct rates based on the nature of your travel:

  • Business: 57.5 cents per mile driven for business use.
  • Medical or Moving: 17 cents per mile driven for medical purposes or for qualified active-duty military moving purposes.
  • Charitable: 14 cents per mile driven in service of charitable organizations.

Step-by-Step Calculation Formula

The math behind the calculation is straightforward. You take the total number of qualifying miles and multiply them by the relevant rate for the 2020 period.

Formula: [Total Miles Driven] × [IRS Rate for 2020] = [Deductible Amount]

Realistic Calculation Examples

To better understand how this works in practice, consider these three scenarios based on 2020 data:

  1. Business Travel: A freelance consultant drove 4,500 miles to meet clients in 2020.
    Calculation: 4,500 x $0.575 = $2,587.50
  2. Medical Travel: A patient drove 320 miles for specialized treatment across the state.
    Calculation: 320 x $0.17 = $54.40
  3. Charitable Work: A volunteer drove 800 miles delivering meals for a local non-profit.
    Calculation: 800 x $0.14 = $112.00

Essential Record-Keeping Requirements

The IRS requires contemporaneous records to substantiate your mileage claim. This means you should maintain a mileage log that includes:

  • The date of each trip.
  • The starting point and destination.
  • The specific business or medical purpose.
  • The odometer reading at the start and end of the trip (or the total miles calculated via a reliable mapping tool).

Note: Under the Tax Cuts and Jobs Act, employees can no longer claim an itemized deduction for unreimbursed employee business expenses. This calculation is primarily for self-employed individuals, business owners, or employees seeking reimbursement from their employers.

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