Saturday, June 11, 2022
For 1st Time Since 2011, IRS Makes Mid-Year Adjustment In Standard Mileage Rate Due To Spike In Gas Prices; 62.5¢/Mile Is Up 11.6% From 2021
IR-2022-124, IRS Increases Mileage Rate For Remainder of 2022:
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, 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 Jan. 1 through June 30, 2022, taxpayers should use the rates set forth in Notice 2022-03.
Bloomberg, IRS Boosts Drivers’ Mileage Deduction Amid Gas Price Spike:
Rates are generally updated annually; the last mid-cycle adjustment was in 2011.