Looking to deduct your mileage on your taxes this year? You’re in luck!
The IRS has announced the new mileage rates for 2022. taxpayers can now deduct 58.5 cents per mile from Jan till June 2022 and Updated Mileage Rates(2022) of 62.5 Cents per mile from July till December 2022 for business travel, 18 cents per mile for medical or moving expenses, and 14 cents per mile for charitable work.
These rates are effective January 1 of this year and will apply to all miles travelled during Jan 1 till Dec 31st of this year.
So whether you’re driving to a business meeting or traveling to volunteer at a soup kitchen, be sure to keep track of your mileage and claim the appropriate deduction on your tax return.
What is Standard Mileage Rates?
IRS standard mileage rates are used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.
The rate is based on an annual study of the fixed and variable costs of operating a vehicle.
The IRS offers four different rates:
- Business Miles
- Medical Miles
- Moving purposes
- Charitable Miles
Internal Revenue Service Standard Mileage Rates 2022
Per IRS, Beginning on January 1, 2022, the standard mileage rates for the use of a Auto/Car (also vans and pickups ) will be:
- 58.5 cents per mile driven for business use
- 18 cents per mile driven for medical, or moving purposes for qualified active-duty members of the Armed Forces
- 14 cents per mile driven in service of charitable organizations; the rate is set by statute)
Pro Tip: Taxpayers can choose to calculate the actual costs of using their vehicle, but only if they maintain adequate records or other sufficient evidence.
What Portion of the Standard Mileage Rate is Treated as Depreciation?
For Business Use Vehicles, the portion of the standard mileage rate treated as depreciation will be 26 cents per mile for 2022. This amount was same in the year 2021 as well.
IRS Standard Mileage Rates History (2011-2024)
|2022 (July till Dec)||62.514||14||18||Updated Rates|
|2022 (Jan till June)||58.5||14||18||IR-2021-251|
The IRS releases standard mileage rates for business, medical, and moving expenses each year.
These new rates will take effect on January 1 of each year.
Businesses should use the new rates to calculate their deductible expenses when filing their tax returns each year.
You can find a full list of the standard mileage rates here at our website or on the IRS website. For more information about deductions and exemptions for businesses, please consult with a accountant, CPA or tax specialist.
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