The Internal Revenue Service (IRS) issued the standard mileage rate for 2021 to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purpose.
Standard Mileage Rates for the beginning on January 1, 2021 for the uses of car, vans, pickups or panel truck will be:
56 cents per mile driven for business use, down 1.5 cents from the rate for 2020
14 cents per mile driven in service of charitable organizations, the rate is set by statute and remains unchanged from 2020
16 cents per mile driven for medical or moving purposes for qualified active duty members of the Armed Forces, down 1 cent from the rate for 2020
The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
Under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses.
Taxpayers also cannot claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station. For more details see Moving Expenses for Members of the Armed Forces.
Our website has been made over! Thanks to Marketing by Marlow, we have a fresh look and some great new features. Get to know our new staff, and see who we’re working with today. We’ll also be sharing new bookkeeping and tax tips through our blog, so you can stay up to date on the latest accounting news. Best of all, everything is mobile friendly so you can learn on the go.
Use our site to contact us for all of your accounting needs!
EJK is ringing in the New Year with Jaye Kubo, our new tax preparer. While Randy Lake enjoys the luxuries of retirement, Jaye will lead our tax department, and work with clients to prepare both personal and business returns.
Jaye joins EJK with 20 years of experience in public accounting and private practice. She focuses on comprehensive tax planning, consulting and compliance services to corporate and partnership clients and their owners as well as not-for-profit organizations. Jaye will also assist with federal and state tax compliance, IRS negotiations, and organizational mergers. Learn more about Jaye’s experience here.
We will miss Randy’s can-do attitude, and congratulate him on retirement!