The IRS announced the 2023 standard mileage rates, effective January 1, 2023, for cars, vans, pickups or panel trucks. The below rates apply to electric and hybrid-electric automobiles as well as gasoline and diesel-powered vehicles.
For cars, vans, pickups, or panel trucks used for business purposes, the standard mileage rate is 65.5 cents per mile.
For medical or moving purposes for qualified active-duty members of the Armed Forces, the standard mileage rate is 22 cents per mile driven.
For those in service of charitable organizations, the rate remains unchanged from 2022 and is 14 cents per mile driven.
Tax Cuts and Jobs Act Reminders
The IRS included a reminder that 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.
Should you have questions about year-end payroll processing, or any other topics related to your personal or business situation, please contact us at any time.
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