Each year, the IRS sets the mileage reimbursement rate to be used for tax deduction purposes. In this post, we discuss the IRS mileage rate for 2022, plus other useful facts about this topic.
What Is The IRS Mileage Rate for 2022?
Usually, the IRS sets its optional standard mileage reimbursement rate once a year in the fall for the next calendar year.
For example, the optional standard mileage rates for 2022 were announced on December 17, 2021.
However, as any driver knows, 2022 is no ordinary year when it comes to gas prices. That’s why the IRS has decided to adjust the optional mileage rate for the second half of 2022.
The last time the IRS made a mid-year adjustment to its mileage rates was more than 10 years ago, in 2011.
Starting July 1 2022 through December 31, 2022, the optional mileage rate for business travel will be 62.5 cents per mile. In other words, the rate went up four cents compared to the rate set for the beginning of the year.
The rate of 14 cents per mile for charitable organizations remains unchanged. For all the information and a comparison between the two sets of rates for 2022, please refer to the table below.
What Is the Optional Standard Mileage Rate?
The optional standard mileage rate is a value expressed in dollars that is set by the IRS to calculate the deductible costs of operating a vehicle for business purposes.
|Purpose||Rates 1/1 through 6/30/2022||Rates 7/1 through 12/31/2022|
Additionally, the federal government and many businesses use the optional standard rate as a reference to reimburse employees for mileage.
However, using the standard rate isn’t mandatory (that’s why it’s called “optional”). You can always decide to calculate the actual costs of using your vehicle.
If you need help with this or any other tax topic, contact the experts at Delgado’s Insurance. We go out of our way to make taxes easy to understand so you can make the most of the deductions and credits you qualify for.
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