IRS Changes Mileage Rates for Second Half of 2022

As they do annually, in late 2021, the IRS released the standard mileage rates for 2022.  Prior to the beginning of any given calendar year, it is a good idea to update your various polices, guidelines, worksheets, and templates to reflect the new rates.

The original 2022 rates were as follows:

·       58.5 cents per mile for business purposes

·       18 cents per mile for medical purposes (the moving deduction is not available for 2022)

·       14 cents per mile for charitable purposes (set by statute, thus does not change annually)

However, in a rare – but not unprecedented – move, the IRS has increased the standard mileage rates for the second half of 2022.  These new rates “kicked in” as of July 1, 2022.  Both the business mileage rate and medical mileage rate increase by 4 cents per mile greater than the original 2022 posted amounts.  The details may be found in IRS Announcement 2022-13, issued June 9, 2022.

Beginning July 1, 2022, the standard mileage rates for cars, vans, pickups, and panel trucks increases to 62.5 cents per mile for business purposes, 22 cents per mile for medical or moving purposes, and 14 cents per mile for charitable purposes.

The updated 2022 rates were as follows:

·       62.5 cents per mile for business purposes

·       22 cents per mile for medical purposes (the moving deduction is not available for 2022)

·       14 cents per mile for charitable purposes (set by statute, thus does not change annually)

Consistent with the past few years (following the 2017 TCJA), the rates cannot be used to claim an itemized deduction for unreimbursed employee travel expenses or for moving expenses (except for certain members of the U.S. Armed Forces).

Written by David C. Moja, CPA www.mojacompany.comThe information provided herein presents general information and should not be relied on as accounting, tax, or legal advice when analyzing and resolving a specific tax issue. If you have specific questions regarding a particular fact situation, please consult with competent accounting, tax, and/or legal counsel about the facts and laws that apply.