![]() ![]() ![]() Notice 2023-03 PDF contains the optional 2023 standard mileage rates, as well as the maximum automobile cost used to calculate the allowance under a fixed and variable rate (FAVR) plan. Leased vehicles must use the standard mileage rate method for the entire lease period (including renewals) if the standard mileage rate is chosen. Then, in later years, they can choose either the standard mileage rate or actual expenses. Taxpayers can use the standard mileage rate but generally must opt to use it in the first year the car is available for business use. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. For more details see Moving Expenses for Members of the Armed Forces. 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. It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. The rate for medical and moving purposes is based on the variable costs. The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles. 14 cents per mile driven in service of charitable organizations the rate is set by statute and remains unchanged from 2022.22 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, consistent with the increased midyear rate set for the second half of 2022.65.5 cents per mile driven for business use, up 3 cents from the midyear increase setting the rate for the second half of 2022.When a military installation or Government - related facility(whether or not specifically named) is located partially within more than one city or county boundary, the applicable per diem rate for the entire installation or facility is the higher of the rates which apply to the cities and / or counties, even though part(s) of such activities may be located outside the defined per diem locality.WASHINGTON - The Internal Revenue Service today issued the 2023 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.īeginning on January 1, 2023, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: Per diem localities with county definitions shall include "all locations within, or entirely surrounded by, the corporate limits of the key city as well as the boundaries of the listed counties, including independent entities located within the boundaries of the key city and the listed counties (unless otherwise listed separately)." Unless otherwise specified, the per diem locality is defined as "all locations within, or entirely surrounded by, the corporate limits of the key city, including independent entities located within those boundaries." Traveler reimbursement is based on the location of the work activities and not the accommodations, unless lodging is not available at the work activity, then the agency may authorize the rate where lodging is obtained. If an agency approves an employee that is not a remote worker for situational telework in a location outside the agency worksite, and the employee is assigned to perform TDY travel, must the employee depart from/return to the agency worksite (assuming the agency worksite is also their permanent duty station)? However, the teleworker could receive a transit subsidy benefit, assuming they meet agency guidelines. Agencies determine reimbursement policies that work best for their agency.įor example, if two employees live in the same neighborhood, both 55 miles from the office, and one employee is a remote employee while the other is a teleworker, the remote employee will be reimbursed for travel expenses when they come to the agency worksite, but the other employee won’t. However, GSA does not have authority to ensure that the non-remote employee receives a commensurate reimbursement. Assuming that a remote employee’s local travel area is 50 miles from their residence/official duty station, a remote employee who lives more than 50 miles from the agency worksite must be reimbursed for their travel costs to the agency worksite. ![]()
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