07 Jan 2020 — New IRS Mileage Rate, and It’s Time for 1099-NEC
It’s finally out. On December 31st the IRS released the 2020 mileage rates used to calculate deductible costs of using a personal car for business, charitable, medical or moving expenses.
Once upon a time the IRS put the rates out in early-to-mid-December. Maybe they were trying to stay abreast of the rapid 21st century news cycle. Never mind that it’s a quixotic quest — two days later came news that would immediately cause a spike in oil prices, though not on the order of 2008.
- The new rate for business miles is 57.5 cents per mile. That’s a decrease from the 2019 rate of 58 cents.
- The rate for miles driven for medical or moving expenses is 17 cents, down three cents from 2019.
- The rate for miles driven on behalf of charitable organizations is 14 cents, unchanged from 2019.
Here’s a chart of the past 10-year history of IRS mileage rates for business use of a personal vehicle:
|Year||Business Rate (cents per mile)|
A complete history of the other rates (charitable, medical, moving) can be found here: https://www.irs.gov/tax-professionals/standard-mileage-rates.
Also the end of this month marks the filing deadline for the new form 1099-NEC non-employee compensation. See Everything Old Is New Again.
Happy New Year! Keep reading, and if you are one of those that haven’t yet availed yourself help in automated vendor information or vendor inquiry management, Click here or call (678) 335-5735 to learn how.