Rare Mid-Year Mileage Rate Increase by the IRS

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For the first time since 2011, the IRS announced a rare mid-year increase in the optional standard mileage rate. Usually, the IRS only updates the mileage rate once a year; however, due to increasing gasoline prices and other factors, they made this unique adjustment.

Taxpayers use the optional standard mileage rate to calculate the deductible costs of operating a vehicle for business use instead of (possibly use rather than) tracking actual expenses. The federal government and many employers use this rate to reimburse employees for mileage.

The increased standard mileage rate for business travel will be 62.5 cents per mile, which is up 4 cents from the rate for the first half of 2022. The new rate for medical or moving expenses (available for active-duty members of the military) will be 22 cents, which up 4 cents from the rate effective at the beginning of 2022. Both rates are effective July 1, 2022, through December 31, 2022.

More information can be found on the IRS website here.

Clarice Landreth, E.A.

Clarice Landreth, E.A.

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