IRS Announces Mileage Rate Increase
Due to recent gasoline price increases, mileage rates will be adjusted for the final months of 2022. On June 9, 2022 the Internal Revenue Service (IRS) announced the optional standard mileage rate increase for the remainder of the year. The adjusted mileage rates, effective July 1, 2022, may be used by taxpayers to calculate the deductible costs of operating an automobile for business and certain other purposes.
According to the IRS, “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.”
Additional details on the adjusted optional standard mileage rates can be found in IRS Announcement 2022-13.
If you would like more information on this recent announcement or have any questions, please contact your tax advisor at Dermody, Burke & Brown, CPAs.