Gas prices aren’t the only thing rising this year. Do you claim mileage on your Schedule C? You’ll want to read this. The IRS has increased the mileage rate for the final 6 months of 2022. You will be able to use the “optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other purposes.” Unprecedented times to be sure; the last time mileage rates changed mid-year was in 2011. What does that mean for you?
Considering recent fuel cost increases, the IRS has made a special adjustment for the remainder of 2022. Effective July 1, 2022, the standard mileage rate for business travel will be 62.5 cents, up 4 cents from the start of year rate. Rates related to moving and medical expenses will be 22 cents, also up 4 cents from the effective rates at the start of the year. There is a legal guidance PDF, provided by the IRS available on their website, that will be linked below. In a recent interview withthe IRS Commissioner Chuck Rettig, he states “We are aware a number of unusual factors have come into play involving fuel costs, and we are taking the special step to help taxpayers, businesses and others who use this rate.” Well, thank you Chuck, we appreciate that!
We hope you find this information helpful as you begin to prepare for the upcoming tax season. Listed below, you will find some links with commonly asked questions about the changes to mileage rates. And as always, the information for our main office downtown will be listed as well. Don’t forget to check back for more!
Ned Jackson Downtown Office
255 N Liberty Street
Jacksonville, FL 32202