Have you noticed the increase in prices at the gas pump? Well, who hasn’t? Relief is coming from the IRS as it announced last week the optional standard business mileage rate will increase to 62.5 cents per mile effective July 1, 2022. This is in recognition to the recent increase of gasoline prices as well as inflation in other automotive expenses as well.
In the IRS Announcement 2022-13 it also states the rate for deductible medical and moving expenses (only available to active-duty military) will increase to 22 cents per mile. Normally the IRS makes the adjustment annually, but with gasoline prices soaring in 2022, the IRS decided to take a “special step” to increase the rates and make it effective midyear.
The deductible business mile rate is used to compute the cost of using an automobile for business purposes, instead of tracking actual costs. Please note: unfortunately, the charitable mileage rate did not change and will remain at 14 cents per mile.
For additional information, click on the link above or feel free to call our office at 210-340-8351 to assist you with your questions.