Mileage Rate 2020 California Calculator

by

2020 California Mileage Rate Calculator

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

function calculateMileage() { var miles = document.getElementById("milesDriven").value; var type = document.getElementById("tripType").value; var resultArea = document.getElementById("resultArea"); var display = document.getElementById("calcDisplay"); if (miles === "" || miles <= 0) { alert("Please enter a valid number of miles."); return; } var rate = 0; var label = ""; if (type === "business") { rate = 0.575; label = "Business"; } else if (type === "medical") { rate = 0.17; label = "Medical/Moving"; } else { rate = 0.14; label = "Charitable"; } var total = parseFloat(miles) * rate; resultArea.style.display = "block"; display.innerHTML = "Total Reimbursement: $" + total.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) + "Based on " + miles + " miles at the " + label + " rate of " + (rate * 100) + " cents per mile."; }

Understanding the 2020 California Mileage Rates

California follows the federal standard mileage rates set by the IRS for tax deductions and employee reimbursements. For the 2020 tax year, the rates were specifically adjusted to reflect the costs of operating a vehicle, including fuel, maintenance, and insurance.

Standard Rates for 2020

  • Business: 57.5 cents per mile. This applies to miles driven for work-related purposes, excluding your normal commute to a fixed place of business.
  • Medical & Moving: 17 cents per mile. This rate is applicable for miles driven to obtain medical care or for moving purposes for active-duty members of the Armed Forces.
  • Charitable: 14 cents per mile. This fixed rate is for miles driven in service of a charitable organization.

California Labor Code 2802

In California, Labor Code Section 2802 requires employers to indemnify employees for all "necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties." Using the IRS standard mileage rate is the most common and legally defensible way for California employers to satisfy this requirement for vehicle expenses.

Example Calculation

If you were a California resident in 2020 and drove 1,000 miles for business purposes, your calculation would be:

1,000 miles × $0.575 = $575.00

Important Records

To claim these deductions or request reimbursement, taxpayers should maintain a detailed log including:

  1. The date of the trip.
  2. The total mileage driven.
  3. The destination and business purpose.
  4. The odometer readings at the start and end of the year (for total annual usage).

Note: These rates are specific to the 2020 calendar year. Rates for subsequent years vary based on the IRS annual adjustments.

Leave a Comment