June 14, 2022Share:
The Internal Revenue Service announced on Thursday an increase in the optional standard mileage rate for the final 6 months of 2022. Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other purposes.
These new rates listed below become effective July 1, 2022:
• Business: 62.5 (1/1-6/30: 58.5)
• Medical/Moving: 22 (1/1-6/30: 18)
• Charitable: 14 (1/1-6/30: 14)
For travel from January 1 through June 30, 2022, you should use the previous rates.
In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2022. The IRS normally updates the mileage rates once a year in the fall for the next calendar year. Midyear increases in the optional mileage rates are rare, the last time the IRS made such an increase was in 2011.
For additional guidance from the IRS, click here. If you have additional questions, please reach out to your Wilkins Miller advisor.