Effective July 1, the IRS standard mileage rate — the amount that can be deducted per-mile in lieu of reporting actual costs — is increasing by 4-cents, to $0.65/mile, per Annoucement 2022-13.
The adjustment is being made in recognition of recent increases in the cost of gasoline. Normally, the adjustment is made annually, but in special cases such as this, the IRS Commissioner will make an exception.
Not only is this amount the official deductible amount when the optional standard method is used, but many businesses, and the federal government, also use it as the reimbursement rate for employee travel and transportation.
If you use a mileage-tracking template, make sure to update the per-mile multiplier. Most programs like Mile IQ do not track actual costs — they simply report the number based on a report’s date range, and the taxpayer or their CPA will do the math on the tax return. In 2011, the last time this happened, the IRS had a field for the number of miles driven Jan 1-June 30 and a separate field for those from July 1-Dec 31 — which is likely to be the case this year as well.
The 14 cents per mile rate for charitable organizations remains unchanged as it is set by statute.
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