The Internal Revenue Service announced on June 9, 2022 an increase in the standard mileage rates in the middle of the year. Normally they are adjusted once a year for inflation, but this midyear adjustment comes following the continuous increase in gas prices. Three out of the four mileage rates will increase by 4¢ per mile for the remainder of 2022.
The new standard mileage rate for business travel will be 62.5¢ per mile. The new rate for deductible medical travel and moving expenses for active-duty military members will be 22¢ per mile. However, the rate of 14¢ per mile for charitable organizations remains the same.
| Mileage Type | Jan 1 – Dec 31, 2021 | Jan 1 – June 30, 2022 | July 1 – Dec 31, 2022 |
|---|---|---|---|
| Business Miles | 56 cents | 58.5 cents | 62.5 cents |
| Medical & Moving Miles | 16 cents | 18 cents | 22 cents |
| Charitable Miles | 14 cents | 14 cents | 14 cents |
IRS Commissioner Chuck Rettig said “The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices”. As gas prices continue to rise around the world, many people are calling for action. “We are aware a number of unusual factors have come into play involving fuel costs, and we are taking this special step to help taxpayers, businesses and others who use this rate.”
While these changes will be helpful for many, it is important to note that taxpayers always have the option of calculating the actual costs of using their vehicle instead of using the standard mileage rates.
Too often this deduction is overlooked because proper documentation was not followed. Check out Tips to Maximize Your Mileage Deduction a few tips to ensure you receive the full benefit of this tax deduction.
If you have any questions, contact an Alloy Silverstein advisor today!
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