Effective July 1, 2022, the IRS has increased the 2022 standard mileage rate to 62.5 cents per mile. This is an increase of 4 cents over the rate that was in place previously for 2022 (58.5 cents per mile).
Lawmakers and other groups have been pressuring the IRS to make a mid-year adjustment to help taxpayers and businesses who are feeling the pinch at the gas pumps. As gas prices continue to climb and hit daily new record highs, the higher mileage rate will help most employees and self-employed individuals who use their vehicles for business travel.
The new mileage deduction rate for moving (allowed in very limited situations) and medical expense uses of a vehicle is also adjusted to 22 cents per mile, starting on July 1. That’s up from 18 cents in the first half of 2022. Unfortunately, charitable mileage remains unchanged at 14 cents/mile.
Any business travel expenses recorded during the first half of 2022 (through the end of June) should still apply the 58.5 cents rate. This is not the first time the IRS had to adjust the mileage rates during a calendar year – this happened back in 2011, too.
Contact your Wegner CPA advisor if you have questions on how to implement this change or how to better track your business-related mileage.