IRS Announces Standard Mileage Rates for 2020
December 31, 2019 – On December 31, 2019, the Internal Revenue Service issued notice 2020-05. This notice provided the optional standard mileage rates for calculating deductible amounts associated with automobile travel for business, charitable, medical, and moving expenses. The standard mileage rate for medical travel decreased from 20 cents per mile in 2019 to 17 cents per mile in 2020. Medical mileage is eligible for reimbursement from Health Savings Accounts (HSA) or Health Care Flexible Spending Accounts (HCFSA). Medical mileage is not eligible for reimbursement from Limited Health Care Flexible Spending Accounts (LFSA) or Dependent Care Flexible Spending Accounts (DCFSA).
What you need to know:
- The standard medical mileage rate decreased from 20 cents per mile in 2019 to 17 cents per mile in 2020.
- Medical mileage may be reimbursed from a HCFSA or HSA, but not from a LFSA or DCFSA.
- To claim medical mileage, a participant must verify the expense traveled for was medically necessary and record the miles traveled to receive the service.
Please contact your account manager or business development partner at 800.532.3327 with questions regarding this adjustment.
About Flores
Flores is a leading national administrator of tax-advantaged reimbursement plans including Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), Health Reimbursement Accounts (HRAs) and Commuter Benefit Accounts (CBAs). In addition to these account-based benefit options, they also handle COBRA and other direct bill services to meet the compliance needs of the employers they serve. In 2018, Flores introduced life.balanced. Reimbursement Accounts (LBA), an affordable post-tax lifestyle reimbursement account for the culture-driven employer. Based in Charlotte, NC, Flores has emerged as the leader in the CDHP market through a service model founded upon innovative technology, dedicated professionals, and an uncompromising commitment to superior service. For more information, visit the Flores website and follow them on LinkedIn.
- Cindy Bistany
- Director of Business Development and Strategic Alliances
- (828) 693-3595
- cindy@flores247.com
- Clay Peddycord, GBA, CFC
- Director of Business Development and Strategic Alliances
- (800) 532-3327
- clay.peddycord@flores247.com
- Aaron Hunt, MBA, CDHC, HSAe, Certified COBRA Administrator
- Director of Business Development and Strategic Alliances
- (800) 532-3327
- aaron.hunt@flores247.com