Internal Revenue Service 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. 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. https://www.morningstar.com/news/marketwatch/20220612256/as-gas-prices-hit-5-per-gallon-irs-makes-mileage-deduction-for-fuel-costs-more-generous-in-rare-midyear-move
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.
Additionally, midyear increases in the optional mileage rates are rare. We’ve not seen the IRS make such a move in the middle of the year since 2011. But then again, we’re dealing with scorching hot price hikes for gasoline this summer.
The IRS standard mileage rate is a key benchmark that’s used by the federal government and many businesses to reimburse their employees for their out-of-pocket mileage expenses.
While commonly called the mileage rate, it isn’t designed to just reflect what it is costing you to fill up your gas tank. It also takes into account other expenses associated with driving for business.
Check out https://www.gasbuddy.com/gasprices/north-carolina to find the best gas prices in Raleigh, North Carolina.