IRS increases mileage rate for remainder of 2022

With rising gas prices, traveling for work is becoming more and more worrisome. Thankfully, the IRS has our backs. If you or your employees travel for work, check out this update from the IRS.

“IR-2022-124, June 9, 2022

WASHINGTON — The Internal Revenue Service today announced 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.

For the final 6 months of 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the rate effective at the start of the year. The new rate for deductible medical or moving expenses (available for active-duty members of the military) will be 22 cents for the remainder of 2022, up 4 cents from the rate effective at the start of 2022. These new rates become effective July 1, 2022.

The IRS provided legal guidance on the new rates in Announcement 2022-13 PDF, issued today. 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. For travel from January 1 through June 30, 2022, taxpayers should use the rates set forth in Notice 2022-03 PDF.

“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.”

While fuel costs are a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.

The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

The 14 cents per mile rate for charitable organizations remains unchanged as it is set by statute.

Midyear increases in the optional mileage rates are rare, the last time the IRS made such an increase was in 2011.”


Mileage Rate Changes


Purpose Rates 1/1 through 6/30/2022 Rates 7/1 through 12/31/2022
Business 58.5 62.5
Medical/Moving 18 22
Charitable 14 14

Source (article and table): Internal Revenue Service. “IRS increases mileage rate for remainder of 2022.” June 9, 2022. https://www.irs.gov/newsroom/irs-increases-mileage-rate-for-remainder-of-2022

Last set of IRS Repair Regulations Issued

The IRS issued final regulations with rules on how to:

  1. Determine gain or loss when property is subject to depreciation is disposed
  2. Determine the asset disposed
  3. Account for partial dispositions of depreciated property

General topics of these regulations are:

  1. Dispositions of MACRS property
  2. Partial dispositions
  3. Determining gain or loss
  4. General asset accounts

The regulations apply to tax years beginning on or after January 1, 2014; but, taxpayers can apply them to tax years beginning on or after January 1, 2012.


For more information, pleased view this referenced article from the Tax Advisor, or contact Brian McFarren at (231) 726-5815 or bmcfarren@brickleydelong.com

What are the IRS 2014 Per Diem Rates for Business Travel?

In late 2014, the IRS issued its updates of special per diem rates for certain business travel expenses incurred by taxpayers in IRS Notice 2014-57.

The IRS Notice includes rate for the following:

  1. Meal and incidental expenses,
  2. Incidental-expenses-only deduction, and
  3. List of high-cost localities for the high-low substantiation method.

For more information, please visit the referenced article or contact Thomas Vereecke at (616) 608-8510 or tvereecke@brickleydelong.