Mileage Rates - The IRS is Slower Than . . . Who? The IRS

What can your company do to prepare for the 2021 IRS Mileage Rate? Does your company reimburse its employees at the current IRS Mileage Rate?

The IRS has just released the standard mileage rates for 2021. Yes, one would think that they would think at least a mere month, but no! The rates are typically updated only during December for the following year!

The mileage rate has changed for 2021 to 56 cents per mile from 57.5 cents per mile in 2020. Yes, I agree, the one-half of one cent was odd in 2020; but that was the amount set based on an annual study of the fixed and variable costs of operating an automobile.

On the other hand, the charity mileage rate is fixed by Congress. It is only 14 cents per mile driven. If you volunteered for a charitable organization and drove your personal vehicle for services such as delivering meals to seniors, you can deduct the charitable mileage expenses.

Part of the ‘variable’ costs of operating a car is the cost of fuel. Americans paid an average of $2.60 a gallon in 2020, according to fuel savings app GasBuddy's annual forecast. On the whole, drivers have not paid more than $3 nationwide since 2014, when prices averaged $3.36, according to the U.S. Energy Information Administration.

As always, Rignanese & Associates Law is a resource for Lake Wales individuals and businesses. For more information about this local firm, please read http://www.RignaneseLaw.com or call 863-294-1114.