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IRS Increases Mileage Rate for Remainder of 2022
Last week, the Internal Revenue Service announced an increase in the optional standard mileage rate for the final six months of 2022.
For the final six 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 military members) 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.
The IRS Commissioner Chuck Rettig noted, “The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices…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.”
Midyear increases in the optional mileage rates are rare; the last time the IRS made such an increase was in 2011.
If you have any questions regarding this new announcement, please reach out to us at either maner@manercpa.com or call us at 517-323-7500, and our team would be more than happy to answer any questions you may have!