The Internal Revenue Service (IRS) has announced its standard mileage rates for the use of a car, van, pickup, or panel truck during the 2024 year.
According to IRS Notice 2024-08, beginning Jan. 1, 2024, the standard mileage rate is .67 cents per mile driven for business use, up 1.5 cents from 2023. The standard rate is 21 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Force, which is down one cent from 2023 and 14 cents per mile driven in service of charitable organizations.
The standard mileage rate for business is calculated using an annual study of the fixed and variable vehicle operating costs, including depreciation, insurance, repairs, tires, maintenance, gas, and oil. However, the rate for medical and moving purposes is based solely on variable costs.
Meanwhile, the charitable rate of 14 cents has remained the same since the Clinton administration.
Tax reform changes made by the Trump administration in 2017 mean taxpayers can no longer claim a miscellaneous itemized deduction for unreimbursed employee travel expenses, making reimbursement plans more critical than ever.
Additionally, only members of the armed forces on active duty can claim a deduction for moving expenses under orders of a permanent change of station.
These are the 2024 tax year rates for the returns that will be filed in 2025. The 2023 standard mileage rates for tax returns submitted in 2024 can be seen here.
Under the Biden administration, the IRS has sometimes mentioned aggressively pursuing wealthy taxpayers and large corporations likelier to skirt tax regulations.
Earlier this year, the IRS announced
it’s looking to hire 3,700 employees, including experienced accountants from across the country, to expand enforcement work focusing on large corporations and complex partnerships.“This is another important step for the IRS as we work to transform the agency and make improvements,” IRS Commissioner Danny Werfel said in a release.
“Our first wave of hiring focused on taxpayer service positions to help improve our phone and in-person assistance. This next wave of hiring will help the IRS add key talent like tax accountants to help reverse a
decade-long decline of audits for the wealthy as well as complex partnerships and corporations. These new employees will be focused on higher-income and complex tax areas like partnerships, not average taxpayers making less than $400,000.”RELATED CONTENT: IRS Set To Rollout Free File Tax Return Pilot In January