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    IRS Raises Mileage Rates for 2022

    Posted by Steve Hood on Jan 20, 2022 2:08:16 PM

    Tax Email Header (1)-Jan-20-2022-07-01-52-83-PM

    The IRS issued the 2022 optional standard mileage rates which are used to calculate the deductible costs of operating an automobile for business purposes, charitable purposes, medical purposes or moving purposes. 

    Beginning on January 1st of this year, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) are:

    • 58.5 cents per mile for business use, up 2.5 cents from the 2021 rate
    • 18 cents per mile for medical or moving purposes for qualified active-duty members of the Armed Forces, up 2 cents from the 2021 rate
    • 14 cents per mile in service of charitable organizations, which is unchanged from 2021

    Mileage can vary. Taxpayers are allowed to calculate the actual costs of using their vehicle rather than using the standard mileage rates. Taxpayers using the standard mileage rate must use it in the first year the car is available for business use; in later years, they can choose either the standard mileage rate or actual expenses.

    Leased vehicles must use the standard mileage rate method for the entire lease period if the standard mileage rate is initially chosen.

    If you would like more information,  you can view the full IRS article HERE

     

    If you would like to speak to one of our tax specialists, please call: 1 (866) 760-0940 or send a note to nkelly@brixeyandmeyer.com to setup a time to speak.  

    Topics: Takeaways, brixey and meyer, Tax, Tax Team, Tax updates, New Year, Mileage

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