The IRS has released its 2024 standard mileage rates for taxpayers who use their vehicles for business, medical, charitable purposes, and certain moving expenses. Understanding these changes is vital for optimizing your tax deductions in the upcoming year.
2024 Standard Mileage Rates Overview
The IRS set the following standard mileage rates for 2024:
- Business Use: 67 cents per mile.
- Medical Use: 21 cents per mile.
- Charitable Use: 14 cents per mile.
FAVR Allowance for 2024
For those using the fixed and variable rate (FAVR) allowance, the IRS has stipulated a maximum standard automobile cost for vehicles placed in service post-2023 of $62,000 for both passenger automobiles and trucks/vans. This allowance is particularly beneficial for employers reimbursing employees who use their personal vehicles for business purposes.
2024 Mileage Rate for Moving Expenses
For active members of the U.S. Armed Forces, the standard mileage rate for moving expense deductions is set at 21 cents per mile. This deduction is applicable under conditions of a permanent change of station and pursuant to military orders. It’s important to note that the Tax Cuts and Jobs Act of 2017 has suspended this deduction for other taxpayers until 2026.
Unreimbursed Employee Travel Expenses
Due to the Tax Cuts and Jobs Act, most taxpayers cannot claim miscellaneous itemized deductions for unreimbursed employee travel expenses. However, exceptions exist for certain groups, including members of the U.S. Armed Forces reserves, state or local government officials paid on a fee basis, and qualifying performing artists.
Next Steps
We recommend reviewing your current vehicle use and expense tracking practices in light of these updates. Proper documentation and adherence to these rates are crucial for maximizing your eligible tax deductions. If you have specific questions about how these changes apply to your situation, or if you need assistance with tax planning for 2024, our team is here to help.