The IRS Increased the Mileage Rate for the Rest of 2022
On June 9, 2022, the IRS announced that they would make a mid-year mileage rate change to combat the much higher-than-normal gas prices. If you qualify for mileage deductions, this could help you trim your 2022 tax bill.
From July 1 through December 31 of 2022, the standard mileage rate for business travel will increase from $0.585 per mile driven for business to $0.625 per mile.
The rate will also increase for active-duty military members who use their vehicles for medical or moving purposes. The mileage rate is $0.18 per mile for the first half of 2022, while the rate will increase to $0.22 per mile for the second half of 2022.
If you’re self-employed and use your car for business travel, you can get a tax deduction for the business use of your vehicle. The standard mileage rate has less record keeping which makes it more straightforward.
If you have questions about this or other tax related issues contact your trusted advisor on the KTLLP Tax Team.