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2024 Standard Mileage Rates Announced by IRS

 The IRS has just rolled out the new standard mileage rates 2024, effective starting January 1. This is crucial for calculating deductibles for locum providers and anyone using their vehicle for business, charity, medical, or moving purposes.

If your ride of choice is a car, van, pickup, or panel truck whether it’s gas, diesel, electric, or hybrid – here’s what you need to know:

  • It’s 67 cents per mile for business use – a jump of 1.5 cents from last year. 
  • Active duty members of the Armed Forces moving or undertaking medical travels will get a rate of 21 cents per mile, marking a decrease of 1 cent from 2023.
  • For those driving in the service of charitable organizations, the rate remains steady at 14 cents per mile.

With the implementation of the Tax Cuts and Jobs Act, it’s essential to keep updated with the changes affecting our tax returns.

Specifically, you must note that miscellaneous itemized deductions for unreimbursed employee travel expenses are no longer eligible. This could have an impact on your tax returns if you were previously claiming this deduction.

In addition, if you’ve moved recently, you should be aware that deductions for moving expenses are mainly off the cards now, except for members of the Armed Forces on active duty who are moving under orders to a permanent change of station.

You still have the choice to decide whether to calculate your vehicle’s actual costs or use the standard mileage rates. You can opt for the standard mileage rate in the first year of your vehicle’s business use. Afterward, you have the flexibility to switch your preference between actual expenses and standard mileage rates in the following years. 

However, if you lease your vehicle, remember that once you pick the standard mileage rate, you’ll need to stick with it for the whole lease period, including renewals.

Notice 2024-08PDF is your guide to the optional 2024 standard mileage rates. This comprehensive document includes all the critical information regarding the maximum automobile cost for calculating the allowance under a fixed and variable rate (FAVR) plan. 

In addition, the notice outlines the maximum fair market value of employer-provided automobiles available for personal use in the calendar year 2024. It allows employers to adopt either the fleet-average or vehicle cents-per-mile valuation rule.

So, adjust your budgets and calculations accordingly! More information can be found on the IRS website