December 20, 2021
2022 Standard Mileage Increase
The IRS on Dec. 17 announced the 2022 standard mileage rates optional rates used to calculate the deductible expenses of operating vehicles for business, charitable, medical, or moving purposes. The 2022 standard mileage rates are explained in IRS Notice 2022-3.
Effective Jan. 1, 2022, the standard mileage rates for the use of an automobile, vans, pickups, and panel trucks are updated as follows:
- 58.5 cents per mile driven for business use, up 2.5 cents from the 2021 rate;
- 18 cents per mile driven for medical, or moving purposes for qualified active-duty members of the Armed Forces, up 2 cents from the 2021 rate; and
- 14 cents per mile driven in service of charitable organizations, a rate set by statute that remains unchanged from 2021.
Taxpayers can use the standard mileage rate but must opt to use it in the first year a car is available for business use. In later years, taxpayers can use either the standard mileage rate or actual expenses. In regards to leased vehicles, the standard mileage rate method must be used for the entire lease period (including renewals) if that is the rate chosen. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Our CPAs are available, and we have the knowledge, skill, and information that you need right now to address your financial needs impacted by the Infrastructure Investment and Jobs Act. Contact us today.
Maria is a Partner at Wilke & Associates, serving closely-held businesses in manufacturing, real estate, transportation/logistics, technology industries, and high net worth individuals and executives in delivering effective tax strategies.