IRS Increases Mileage Rates
These soaring gas prices are still on the rise and putting a damper on a lot this summer. The IRS is seeing this and announced an increase in the optional standard mileage rate for the last 6 months of the year. The new rate of 62.5 cents per miles will become effective July 1, 2022. This is a 4 cent increase to help combat the rising gas prices. “The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices,” said IRS Commissioner Chuck Rettig. “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.”
They are also implementing a new rate for medical or moving expenses. Another increase of 4 cents bringing the total to 22 cents. Midyear increases are not common, in fact, the last time the IRS made an increase like this was in 2011. While these continually increasing gas prices are not ideal, hopefully this can ease a little bit of pain during tax season.
|Deduction||January to June 2022||July to December 2022|
|Business||58.5 cents per mile||62.5 cents per mile|
|Medical / Moving||18 cents per mile||22 cents per mile|
|Charitable||14 cents per mile||14 cents per mile|