In response to the recent increase in fuel price, the IRS has issued an increase in the optional standard mileage rates for business travel effective on July 1, 2022 for the remainder of the year.
“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,” said IRS Commissioner Chuck Rettig.
Business Mileage Guidelines
While the IRS states that standard mileage rates can be applied to the use of a car, van, pickup or panel truck used for business purposes, it’s important to note the correct application of the deduction.
The IRS Mileage Rates July 1, 2022 through December 31, 2022 for Using a Vehicle for Business, Medical, and Charitable Purposes are:
- 62.5 cents per mile for each business mile
- 22 cents per mile to cover moving or medical purposes
- 14 cents per mile driven for charitable organizations (non-variable)
Visit the IRS announcement for additional details: IRS Standard Mileage Rates.
According to the IRS, taxpayers still have the option to calculate the actual costs of using their vehicle rather than using the standard mileage rates.
Contact a KCoe Isom tax advisor with questions about the fuel price increase and this deduction and its applicability.