IRS Increases The Official Mileage Rates In mid-2022
On June 9 the IRS announced an increase in the mileage rates, applicable from July 1, 2022. The rates for business, medical and moving mileage are increasing by 4 cents per mile. See the IRS announcement.
The new IRS mileage rate for 2022
The revised mileage rates are:
- 62.5 cents per mile for business purposes
- 22 cents per mile for medical and moving purposes
- 14 cents per mile for charity purposes, remaining unchanged.
The rates apply to all qualified mileage from July 1, 2022, and are for the use of cars, pickups, panel trucks and vans.
From January 1 to June 30, 2022, the IRS mileage rates are:
- 58.5 cents per mile for business purposes
- 18 cents per mile for medical and moving purposes
- 14 cents per mile for charity purposes.
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The IRS normally revises mileage rates at the end of the year for the upcoming tax year, taking into consideration the fixed and variable costs of owning and driving a vehicle in the United States.
What caused the rate increase
The IRS cites the increasing fuel prices in the US this year as the reason for the new rate. See more about the original IRS mileage rate 2022 that applied from January 1 to June 30 2022, or if you are claiming mileage for the previous year, see the IRS mileage rate 2021.
With the new mileage rate for business, you can receive reimbursement or deduction of up to 62.5 cents per mile for work-related driving with your personal vehicle from July 1. If you have to drive in order to receive medical treatments you might be eligible for a tax deduction of 22 cents per mile, as well as if you are moving while on active duty in the Force. Qualified mileage accrued in service of charitable organisations will give a tax deduction of 14 cents per mile.
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