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2019 Standard Mileage Rates Released by IRS

The IRS has now released the optional standard mileage rates for 2019, rates that most may use to compute deductible costs of operating vehicles.

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The IRS has now released the optional standard mileage rates for 2019, rates that most may use to compute deductible costs of operating vehicles.

The IRS has now released the optional standard mileage rates for 2019, rates that most may use to compute deductible costs of operating vehicles for business use, medical use and for use in charitable purposes. These rates are also applicable to some members of the military, who may use them to compute their moving expense deductions.

2019 Standard Mileage Rates

The standard mileage rates for 2019 are as follows:

  • 58 cents per mile for business uses, which is up 3.5 cents per mile from 2018;
  • 20 cents per mile for medical uses, which is up 2 cents per mile from 2018; and,
  • 14 cents per mile for charitable uses, which is the same as 2018.

Taxpayers may use these rates, instead of their actual expenses, to calculate their deductions for business, medical or charitable use of their own vehicles.

Fixes and Variable Rate Allowance for 2019

For purposes of the fixed and variable rate (FAVR) allowance, the maximum standard automobile cost for vehicles places in service after 2018 is:

  • $50,400 for passenger automobiles, and
  • $50,400 for trucks and vans.

Employers can use a FAVR allowance to reimburse employees who use their own vehicles for that particular business.

2019 Mileage Rate for Moving Expenses

The standard mileage rate for the moving expense deduction is 20 cents per mile for 2019. In order to claim this deduction, the taxpayer must be:

  • A member of the Armed Forces of the United States,
  • On active military duty, and
  • Moving under a military order and incidental to a permanent change of station.

It should be noted that the Tax Cuts and Jobs Act of 2017 suspended the moving expense deduction for all other taxpayers until 2026.

Unreimbursed Employee Travel Expenses

For most taxpayers, the Tax Cuts and Jobs Act suspended the miscellaneous itemized deduction for unreimbursed employee travel expenses. However, certain taxpayers may still claim an above-the-line deduction for these expenses. These taxpayers include:

  • Members of a reserve component of the U.S. Armed Forces,
  • State or local government officials paid on a fee basis, and
  • Performing artists with relatively low incomes.

Employers and employees alike familiarize themselves with these new rates as 2019 begins, along with members of the armed services, reserves and other select groups. This will prove to be vital information for the year to come, as well as when people begin preparing their tax returns in the year ahead.

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