By Nathalie Voit
The International Revenue Service (IRS) announced on June 9 that it would increase the standard mileage rate for business travel for the second half of 2022.
Effective July 1, the rate for the deductible costs of operating a business vehicle will increase by 4 cents to 62.5 cents per mile. Self-employed individuals or small business owners who operate automobiles for business purposes are eligible for relief.
The IRS said the rate for deductible medical or moving expenses for active-duty military members would also increase by 4 cents. Eligible filers can claim 22 cents per mile for the final six months of 2022. The rate for charitable organizations will remain unchanged at 14 cents per mile.
“The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices,” IRS Commissioner Chuck Rettig said in a news release. “We are aware a number of unusual factors have come into play involving fuel costs, and we are taking this special step to help taxpayers, businesses, and others who use this rate.”
The agency noted this was a “special adjustment” in light of soaring fuel costs. The IRS said midyear shifts in the standard mileage rate are “rare” and that rates are typically updated just once a year in the fall.
The last time the IRS passed a midyear mileage change was in 2011–following a spike in fuel costs.
The agency reminded taxpayers they are not obliged to use the standard mileage rate to claim their deduction.
“Taxpayers always have the option of calculating the actual costs of using their vehicle,” the IRS said.
