The Internal Revenue Service announced on June 9, 2022 an increase to mileage rates for 2022 taxes. The changes are just for the final six months of 2022 only. Individuals taking advantage of this deduction will need to break out their mileage into the proper time category.
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The standard mileage rate is optional. It is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. The standard cost factors in fuel, maintenance, registration, depreciation, insurance and other fixed and variable costs. Taxpayers are able to take the greater of the actual costs or the standard cost in a calendar year.
This per mile rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.
As a reminder, the IRS requires “contemporaneous” records to be maintained with the miles driven by day and the purpose of the trip.
IRS mid-year rate adjustments are rare. The agency only did so for 2008 and 2011
The 14 cents per mile rate for charitable organizations remains unchanged, as it is set by statute.BACK TO LIST