April 2024

Federal Updates

 

IRS Announces 2024 Automobile Business Use Mileage Rates

01/04/24

Author: ADP Admin/Wednesday, January 3, 2024/Categories: Compliance Corner , Federal Compliance Update

On Dec.  14, 2023, the Internal Revenue Service issued via Notice 2024-08 the 2024 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, moving, and charitable purposes.

The details:

As of Jan. 1, 2024, the standard mileage rates for the use of a car (including vans, pickups, or panel trucks) will be:

·       67 cents per mile for business miles driven;

·       21 cents per mile driven for moving purposes;* and

·       14 cents per mile driven in service to a charitable organization.

 

*Applicable to members of the Armed Forces Only.

Exceptions for Moving Expenses:

The Tax and Jobs Act of 17 suspended the deduction for moving expenses for taxable years beginning after Dec.  31, 2017, and before Jan. 1, 2026, except for members of the Armed Forces on active duty who move pursuant to a military order and incident to a permanent change of station. Thus, except for taxpayers that are members of the Armed Forces, the standard mileage rate provided in Notice 2024-08 is not applicable for the use of an automobile as part of a move occurring during the suspension.

 

 

For a copy of Notice 2024-08 please click on the link provided below:

https://www.irs.gov/pub/irs-drop/n-24-08.pdf

Have questions?

Please contact your dedicated ADP Service Representative with any questions.

 

 

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