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1 1 (February 16, 2024)

handle is hein.crs/goveoiy0001 and id is 1 raw text is: S Congressional ____ ~ Research Service Internal Revenue Service (IRS) Standard Mileage Rates February 16, 2024 The Internal Revenue Service (IRS) provides standard mileage rates as optional methods for taxpayers to substantiate their transportation expenses. This Insight reviews how the standard mileage rates are set, who uses them, and a history of the rates. Who Uses the Standard Mileage Rates? Standard mileage rates are used for various tax deductions. Under current law, only taxpayers with business income (such as business owners and independent contractors) may claim a deduction for business mileage. The charitable mileage rate is claimed as part of the charitable giving itemized deduction, similar to an in-kind donation. Certain taxpayers, notably members of the Armed Forces, may also use the standard mileage rates in other situations. Employers generally may exclude some business mileage reimbursements from their employees' income for tax purposes. To do so, either the employee must document their business-related automobile expenses, or the employer can multiply the worker's business-related mileage by a standard mileage rate up to the rate set by the IRS. Prior to 2018, taxpayers could use the medical and moving standard mileage rate to calculate the above- the-line deduction for unreimbursed moving expenses. Additionally, taxpayers who itemized their deductions could use the business standard mileage rate to calculate their unreimbursed employee travel expenses. The 2017 tax law (P.L. 115-97, commonly called the Tax Cuts and Jobs Act) prohibited most taxpayers from deducting unreimbursed employee or moving expenses through 2025. The standard mileage rate is also used to set the rate of reimbursement for government-sponsored travel. The U.S. General Services Administration's (GSA's) privately owned automobile mileage reimbursement rate is statutorily required to track the standard mileage rates set by the IRS. Many private businesses, state and local governments, and nonprofits choose to reimburse their employees at the federal rate for simplicity and to maximize the tax-free employee benefit. Federal law only requires employers to reimburse employees for business-related mileage if failing to do so would push the employees' net income below the minimum wage, though some states require employers to reimburse employees for all work-related mileage expenses. Congressional Research Service https://crsreports.congress.gov IN12320 CRS INSIGHT Prepared for Members and Committees of Congress

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