Higher Mileage Deduction in Response to Gas Prices
In recognition of recent gasoline price increases, the IRS announced an increase in the standard mileage rates for the rest of the year. Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other purposes.
Beginning July 1, 2022, the rates are 62.5 cents per mile for business use of an automobile (up 4 cents) and 22 cents per mile for costs of using an automobile as a medical or moving expense (also up 4 cents) . Rates from the beginning of the year remain 14¢ per mile for charitable organizations remains unchanged as it is set by statute.
If this calculation is used in any form of a deduction on your 2022 tax return, it will be imperative for you to keep totals accurate to maximize your deduction.