Mileage Rate Increase – IRS Provides Relief for Vehicle Use

As gas prices continue to soar, the IRS has announced an update to alleviate some of the pressure on taxpayers. Effective July 1 through December 31, 2022, the standard mileage rate – which is used to calculate the deductible amount of operating a vehicle during business trips will increase by four cents to 62.5 cents per mile. A four cent increase to 22 cents per mile will also apply to people who use their vehicles for medical purposes. The 14 cents per mile rate for charitable use will not change.

To claim the deduction, the IRS requires a log of business, medical, and personal miles. Using mobile apps may make it easier to automatically track mileage.

For more information on this relief, contact your Anchin Relationship Partner.