People Processes

Standard mileage rates updated to reflect elimination of miscellaneous itemized deductions In Notice 2018-42, the IRS has updated Notice 2018-3, to reflect changes to the tax law made by the Tax Cuts and Jobs Act (TCJA; P.L. 115-97). Changes impacting Notice 2018-3 include: the suspension of the deduction for un-reimbursed employee expenses; the suspension of the deduction for move related expenses; and the increase of depreciation limits for passenger vehicles. Un-reimbursed employee expenses. Notice 2018-3 stated that taxpayers, including those deducting unreimbursed employee travel expenses, could use the standard mileage rate of 54.5 cents per mile. The TCJA suspends all miscellaneous itemized deductions that are subject to the 2 percent of adjusted gross income floor until January 1, 2026. This includes unreimbursed employee travel expenses. Therefore, Notice 2018-3 cannot be used to claim a deduction for such expenses. There are certain taxpayers who may continue to deduct itemized unreim