🚨Big News from the IRS 🚨
The IRS is increasing the standard mileage rate to 62.5 cents starting on July 1, 2022.
There will be two rates for the year – and you will need to track your mileage from 1/1/22-6/30/22 and know that number separately, then track 7/1/22-12/31/22, if you want to take full advantage of the standard mileage deduction.
This is most important for business owners who drive to meet with clients, make deliveries or travel for work. As a reminder, the standard mileage rate covers gas, wear and tear on your vehicle, insurance and depreciation of the vehicle.
You can track mileage with your Quickbooks Online mobile app, a spreadsheet or pen and paper – whatever works for you.
You need the essentials, DATE, BUSINESS PURPOSE, and NUMBER OF MILES.
WASHINGTON — 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.