IRS Releases Increase in Mileage Rates for Final Six Months of 2022
The Internal Revenue Services (IRS) recently released an increase in the optional standard mileage rates for the final six months of 2022. These rates are used to calculate the deductible cost of operating an automobile for business, charitable, medical, or moving purposes. The term “automobile” includes any car, van, pickup, or panel truck. As of July 1, 2022, the standard mileage rates are as follows:
For business use of an automobile, the updated 2022 rate is 62.5 cents per mile (up 4 cents from the rate effective at the start of the year).
Please note that since the Tax Cuts and Jobs Act (TCJA) suspended the miscellaneous itemized deduction for unreimbursed employee business expenses from 2018 to 2025, the standard mileage rate cannot currently be used to claim a deduction for those expenses. The TCJA did, however, include an exception for members of the U.S. armed forces reserves, state or local government officials who are paid on a fee basis, and some performing artists.
Driving for medical or moving purposes may be deducted at 22 cents per mile (up 4 cents from the rate effective at the start of the year). Currently, this rate is only available for active-duty members of the military.
The rate for service to a charitable organization is unchanged, set by statute at 14 cents per mile.
Please feel free to contact us with any questions you might have about mileage rates.