Fuel Price Increases Prompt IRS to Increase Business Mileage Rates

New rates in effect starting July 1 through end of 2022

Subscribe

Sign up for our eNewsletter, Good Sense, to get updates on financial, strategic and operational best practices for financial institutions.

Subscribe

Get the latest information on legislation, tax reform, business guidance and on farm optimization strategies from your KCoe Isom Ag Experts.

Subscribe

Get the latest information on legislation, tax reform, business guidance and biofuel manufacturing optimization strategies from your KCoe Isom Biofuels Experts.

Reading Time: < 1 minutes

In response to the recent increase in fuel prices, the IRS has issued an increase in the optional standard mileage rates for business travel effective on July 1, 2022 for the remainder of the year. 

 “We are aware a number of unusual factors have come into play involving fuel costs, and we are taking this special step to help taxpayers, businesses and others who use this rate,” said IRS Commissioner Chuck Rettig. 

 Business Mileage Guidelines 

 While the IRS states that standard mileage rates can be applied to the use of a car, van, pickup or panel truck used for business purposes, it’s important to note the correct application of the deduction. 

 The IRS Mileage Rates July 1, 2022 through December 31, 2022 for Using a Vehicle for Business, Medical, and Charitable Purposes are: 

  • 62.5 cents per mile for each business mile 
  • 22 cents per mile to cover moving or medical purposes
  • 14 cents per mile driven for charitable organizations (non-variable)

 Visit the IRS announcement for additional details: IRS Standard Mileage Rates 

 According to the IRS, taxpayers still have the option to calculate the actual costs of using their vehicle rather than using the standard mileage rates. 

 Contact a KCoe Isom tax advisor with questions about this deduction and its applicability. 

K·Coe People Related to this Post

No people have been associated with this post.