Effective as of Jan. 1, 2021, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) for 2021 will be:
56 cents per mile for business purposes
16 cents per mile for medical or moving purposes
14 cents per mile for charitable purposes
The new mileage rates are down from 57.5 cents per mile for business purposes and 17 cents per mile for medical or moving purposes in 2020.
Due to the Tax Cuts and Jobs Act, taxpayers are not able to claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Only members of the Armed Forces on active duty moving to a permanent change of stations may claim a deduction for moving expenses.
If an employee’s actual costs of operating a vehicle for business purposes are higher, they can deduct a higher amount if they document the actual expenses.
Doeren Mayhew’s tax advisors are here to help you understand how these new mileage rates may impact your specific tax situation. Contact us today.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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