07 Jan 2020 — New IRS Mileage Rate, and It’s Time for 1099-NEC
[vc_row css_animation="" row_type="row" use_row_as_full_screen_section="no" type="full_width" angled_section="no" text_align="left" background_image_as_pattern="without_pattern"][vc_column][vc_column_text] 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. [unordered_list style="circle"] 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. [/unordered_list] 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) 2020 57.5 2019 58.0 2018 54.5 2017 53.5 2016 54.0 2015 57.5 2014 56.0 2013 56.5 2012 55.5 2011 July-December 55.5 2011 January-June 50.5 2010 50.0 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...