The IRS has announced the new Standard Mileage Allowance rates for calendar year 2021.
Beginning on January 1, 2021, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
* 56 cents per mile driven for business use, down 1.5 cents from the rate for 2020,
* 16 cents per mile driven for medical or moving (for qualified active duty members of the Armed Forces only) purposes, down 1 cent from the rate for 2020, and
* 14 cents per mile driven in service of charitable organizations, the rate is set by statute and remains unchanged from 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 (does not include depreciation). The rate for charitable driving is set my Congress and has not been increased for decades.
Remember - employees can no longer deduct employee business expenses, including business mileage, as an itemized deduction on Schedule A.
BTW - Trump has refused to sign the new stimulus bill discussed yesterday. So the second round of checks is not law yet.