The IRS has announced it is making a midyear increase to the optional standard mileage rate. As of July 1, 2022, the standard mileage rate for business travel will be 62.5 cents per mile for the last half of the year (up from 58.5 cents per mile for the first half of 2022). Typically, this mileage rate is adjusted annually, but the IRS decided to make a midyear adjustment due to the recent increase in fuel prices.
The business standard mileage rate can be used to reimburse employees and by certain self-employed taxpayers to compute a deduction for the business-related mileage they drive. Other potentially deductible mileage rates are as follows:
- Medical – 22 cents per mile as of July 1 (up from 18 cents per mile)
- Moving (for active-duty military members only) – 22 cents per mile as of July 1 (up from 18 cents per mile)
- Charitable – 14 cents per mile (remains the same throughout 2022)
Those that take a deduction using the standard mileage rate should keep track of their miles separately for each period. As always, adequate records should be maintained when using the standard mileage rate.
If you have any questions on the mileage rate increases or if mileage is deductible for you, please reach out to us.