2019 Mileage Allowances
The optional standard mileage rates for business use of a vehicle will increase in 2019. For business use of a car, van, pickup truck, or panel truck, the rate will be 58 cents per mile. The standard mileage rates can be used to calculate the deductible costs of operating an automobile in lieu of tracking actual expenses.
The standard mileage rate also can be used as the maximum amount an employer can reimburse an employee for operating an automobile for business purposes without substantiating the actual expense incurred.
Driving for medical care or for certain limited moving expense purposes for members of the armed forces may be deducted at 20 cents per mile.
The TCJA repealed the moving expense deduction for individual taxpayers from 2018 to 2025, except for U.S. armed forces members on active duty with some stipulations.
However, an exception to that disallowance applies to members of a reserve component of the U.S. armed forces, state or local government officials paid on a fee basis, and certain performing artists. They are permitted to deduct mileage expenses on line 24 of Form 1040, U.S. Individual Income Tax Return, (an above-the-line deduction) and may continue to use the 58 cents per mile business allowance.
The rate for service to a charitable organization is unchanged, at 14 cents per mile.
The portion of the business standard mileage rate that is treated as depreciation will be 26 cents per mile for 2019.