Mileage Reimbursement Rate 2020 Calculator
Calculate your tax-deductible mileage based on official 2020 IRS standard rates.
Understanding the 2020 IRS Mileage Rates
For the tax year 2020, the Internal Revenue Service (IRS) set specific standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. These rates apply to use of a car, van, pickup, or panel truck.
| Category | 2020 Rate per Mile |
|---|---|
| Business | 57.5 cents |
| Medical or Moving | 17 cents |
| Charitable | 14 cents |
How to Use the 2020 Mileage Calculator
To determine your total reimbursement or tax deduction for the 2020 period, follow these steps:
- Enter Total Miles: Input the total distance recorded in your mileage log for the 2020 calendar year.
- Select the Category: Choose whether the miles were driven for business, medical/moving, or charitable purposes.
- Review the Result: The calculator multiplies your mileage by the corresponding cents-per-mile rate to provide a total dollar amount.
Important 2020 Rules and Requirements
It is crucial to remember that the 2020 business mileage rate decreased slightly from the 2019 rate (which was 58 cents). Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates, provided they maintain thorough records of all expenses including gas, oil, repairs, and insurance.
Example Calculation
If you drove 1,000 miles for business in 2020, your calculation would be: 1,000 miles × $0.575 = $575.00. If those same miles were for charitable work, the calculation would be: 1,000 miles × $0.14 = $140.00.
Keep in mind that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. However, self-employed individuals and certain specific professions (like armed forces reservists or fee-basis state/local government officials) may still deduct business miles.