IRS Raises Standard Mileage Rates for 2022
Standard mileage rates are up slightly from 2021 in two categories, according to the IRS.
Beginning Jan. 1, 2022, the standard mileage rates for using a car, van, pickup, or panel truck will be 58.5 cents per mile for work use.
The rate is up 2.5 cents from 2021, but only half of a cent from 2019, when it was 58 cents.
The mileage for driving medical products or moving purposes is also up two cents for 2022, at 18 cents per mile driven.
The IRS said the rate for driving in service of charitable organizations is unchanged for 2022 at 14 cents per mile driven. The rate was set by statute.
The agency said it rates the standard mileage for business use based on an annual study of the fixed and variable costs of operation. Medical and moving purposes are based on variable costs.
Options for Tax Purposes
The IRS reminds taxpayers they have the option of calculating the actual costs of using their vehicle, rather than the standard mileage rates.
Low-mileage drivers often chose to use the plan.
If taxpayers chose to use the standard mileage rate, they must opt to do so in the first year the car is available for business use.
For the years that follow, they can choose either standard mileage rate or actual expenses.
Under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses.
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