IRS Announces 2024 Standard Mileage Rates for Business and Personal Use

In Oak Brook, IL, the IRS has released the updated 2024 standard mileage rates, impacting business, medical, and charitable purposes. Here’s what you need to know:

Overview of 2024 Standard Mileage Rates

The IRS has set the following standard mileage rates effective January 1, 2024:

• Business Use:

  67 cents per mile, increasing by 1.5 cents from the previous year.

• Medical or Moving Purposes (Armed Forces):

  21 cents per mile, decreasing by 1 cent.

• Charitable Organizations:

  14 cents per mile, unchanged from 2023.

Applicability Across Vehicle Types

These rates apply universally, covering electric, hybrid-electric, gasoline, and diesel-powered vehicles. Whether you’re using an eco-friendly car or a traditional vehicle, these rates remain consistent.

Choosing Between Standard Mileage and Actual Expenses

Taxpayers have the option to use the standard mileage rate or calculate actual vehicle expenses. The choice typically applies in the first year of business use, with flexibility in subsequent years to switch between methods.

Specific Rules and Considerations

Under the Tax Cuts and Jobs Act, miscellaneous itemized deductions for unreimbursed employee travel expenses are no longer permitted. Exceptions exist for active-duty Armed Forces personnel moving under orders.

Additional Details and Resources

For more comprehensive information on how these rates affect your tax planning, refer to IRS Notice 2024-08. This notice covers maximum automobile costs under fixed and variable rate plans, along with rules for employer-provided vehicles.