IRS increases mileage rate for remainder of 2022
(IRS) – The IRS announces an increase in the optional standard mileage rate for the final 6 months of 2022. Taxpayers can use the “optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other purposes.
Normally, the IRS states it updates the mileage rates once a year in the fall for the next calendar year. But they are making this change sooner due to recent gasoline prices.
“The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices,” said IRS Commissioner Chuck Rettig. “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.”
For travel from Jan. 1 through June 30, 2022, taxpayers should use the rates set forth in Notice 2022-03.
“For the final 6 months of 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the rate effective at the start of the year. The new rate for deductible medical or moving expenses (available for active-duty members of the military) will be 22 cents for the remainder of 2022, up 4 cents from the rate effective at the start of 2022. These new rates become effective July 1, 2022.” – You cand find the Notice 2022-03 here.
The IRS states while fuel costs are a significant factor in the mileage figure, other items enter into the calculation of mileage rates. These include depreciation and insurance and other fixed and variable costs.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates, according to the IRS.
The 14 cents per mile rate for charitable organizations remains unchanged as it is set by statute.
The IRS states that midyear increases in the optional mileage rates are rare. The last time the IRS made such an increase was in 2011.
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