The IRS announced in June that standard mileage rates have gone up! In recognition of recent gasoline price increases, the IRS made a special adjustment for the standard mileage rates for the final months of 2022, effective July 1, 2022.
Standard Mileage Rate Increases
For the final 6 months of 2022, the standard mileage rate for business travel has increased to 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) is 22 cents for the remainder of 2022, up 4 cents from the rate effective at the start of 2022.
The 14 cents per mile rate for charitable organizations remains unchanged as it is set by statute.
Claiming the Mileage Deduction on Taxes
That means from January through June 30, you'll use the previously announced mileage rates for qualified travel. And, July through the end of the year, you'll use the revised rates.
Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other purposes, but to receive full credit on your taxes for miles driven, you must properly document your mileage.
Get Help with Standard Mileage Deductions
Need some help getting all your allowed tax credits and deductions? Call Paul's Bookkeeping and Tax Service at 806-352-6085. We'll organize your financial records to help maximize your net income.