IRS Announces Mileage Rate Increase for 2022
We know this may come as a shock…but we have good news from the IRS.
No, seriously.
In a rare mid-year move, the IRS has decided to increase the optional standard mileage rate for the remaining six months of 2022. This rate is used to calculate the costs of operating a vehicle for business, medical and military moving expenses, and charitable purposes, rather than tracking actual costs, although taxpayers still have the option to do so.
The standard mileage rate for business travel from January 1-June 30, 2022, was $0.58 per mile, while it will increase to $0.62 per mile beginning on July 1, 2022, and continuing through the end of the year. You can view all of the mileage rate changes in the table below:
The IRS typically only reviews and updates mileage rates once a year, in the fall for the upcoming calendar year. The last time they made a mid-year change was back in 2011. But due to the dramatic increase in recent gas prices, among other factors like depreciation and insurance, this is a step in the right direction for taxpayers.
Back in May, lawmakers urged IRS Commissioner Chuck Rettig to increase rates, saying, “As you know, gas prices have reached record highs in 2022. Increasing the standard mileage rate is critical to support the small business owners, self-employed individuals, and gig-economy workers whose livelihoods have been most harmed by these price increases.”
Thankfully he listened because now you benefit! Stay tuned for more tax updates, and as always, we’re here to answer your questions and provide our expertise. Reach out to schedule a call.
