The IRS has increased the optional standard mileage rate by 4 cents per mile, its first mid-year mileage rate adjustment in 11 years.
Citing the rising cost of gasoline, the IRS made the rare mid-year move and boosted the rate to 62.5 cents per mile. It also increased the rate for deductible medical or moving expenses (applicable only to active-duty military members) by 4 cents to 22 cents per mile. Both changes are effective July 1.
The standard mileage rate is commonly used to calculate business mileage costs, and the federal government and businesses also use the rate to calculate mileage reimbursement costs. According to AAA, the national average price for regular gasoline was $4.98 on June 10, up from $3.07 one year earlier.
Related: QuickBooks Online can make tracking your business mileage easier.
© 2022 KraftCPAs PLLC. Photo by prostooleh/freepik.com
KraftCPAs can help.
Call us at 615-242-7351 or complete the form below to connect with an advisor.