IRS 2022 Standard Mileage Rates Increased

The IRS typically updates their standard mileage rates just once each year at the beginning of the year. But, when prices are changing quickly, as they are in 2022, the IRS sometimes releases a mid-year adjustment. The last time the IRS made a mid-year adjustment to the standard mileage rates was 2011.

The IRS recently released Announcement 2022-13, increasing the standard mileage rate for business travel to 62.5 cents per mile for July-December 2022 (up from 58.5 cents per mile effective for January-June 2022). The 14 cents per mile rate for charitable driving remains unchanged.

Taxpayers have the option of using the business standard mileage rate for calculating the deductible costs of operating a vehicle for business purposes. This is a simplified alternative to keeping detailed records of the actual cost of operating the vehicle.

Schreiber Accounting and Advisory can help you understand your business auto deductions with comprehensive tax planning and preparation services for small businesses, individuals, and nonprofits. Contact the firm for more information.

Material discussed is for informational purposes only. It is not to be interpreted as investment, tax, or legal advice. Individual situations vary, and this information should only be relied upon when coordinated with individual professional advice.