Federal Mileage Rate 2022 Increases
The IRS has announced an increase to the standard mileage rate for 2022. Effective July 1, the rate will increase by 4 cents per mile. This change will apply to business expenses as well as medical and moving expenses. This increase will increase the standard mileage rate for business use to 62.5 cents per mile.
Standard mileage rate increases 4 cents per mile for the last six months of 2022
The IRS has increased the standard mileage rate by 4 cents per mile for the last six-month period of 2022, and that increase was prompted by recent fuel costs. As reported by the New York Times, a recent report indicated that fuel prices rose more than a dollar per gallon, and the IRS’s announcement comes just in time. The recent increase in gas prices is due to a number of factors, including increased fuel prices due to restrictions on the COVID-19 fuel additive, as well as the sanctions imposed on Russia.
In an effort to address soaring gas prices, the Internal Revenue Service announced an adjustment to the standard mileage rate for business travel that goes into effect July 1. Beginning July 1, the new rate will be 62.5 cents per mile. This is a significant increase and represents the first mid-year adjustment since 2011.
Medical expenses can be included in business mileage rate
There is some good news for those who drive a lot for work. The IRS has recently updated the standard mileage rate for calendar year 2022. As of July 1, 2022, the standard mileage rate for business travel will be 62.5 cents per mile and for the first six months, the rate will be 58.5 cents per mile. You can read the full text of IRS Notice 2022-13 for more information.
The Internal Revenue Service (IRS) updates the federal mileage rate each year. These rates are used to determine the deductible costs of operating an automobile. The new rate will take into account recent increases in gasoline prices.
Employees can elect to use a higher mileage rate than the IRS standard rate
The IRS recently announced that employees can elect to use a higher federal mileage-rate than the IRS standard rate for the final six months of 2022. From July 1 through Dec. 31, 2022, the IRS mileage rate will be 62.5 cents per mile, which is the highest rate published by the agency. Previously, the standard mileage rate was 58.5 cents per mile. The rate for charitable organizations remains the same at 14 cents per mile.
The IRS sets the standard mileage rate each year, and this rate is used by employers and independent contractors when calculating deductible expenses. The standard rate is the national average, and is more useful for tax deduction purposes than the local rates. The cost of fuel varies greatly by region.