The IRS has just offered a gift to millions of drivers who are suffering from ever-rising gasoline costs.
Taxpayers who take the standard mileage rate deduction on their tax return for the miles they log as part of their business will be able to use a figure of 62.5 cents per mile for the last six months of 2022, the IRS announced Thursday. That is up 4 cents from the rate effective for the first six months of the year.
In addition, drivers who take the standard mileage rate deduction for medical- or moving-related reasons can take a deduction of 22 cents per mile starting in July. That is up from 18 cents during the first six months of the year.
The unusual midyear change is intended to offer some relief to taxpayers caught in an inflationary spiral that shows few signs of easing. In a press release, Chuck Rettig, IRS commissioner, says:
“The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices. 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.”
Only those who qualify for the standard mileage rate deduction can take it. The IRS offers more information about how to qualify for the following uses at its website:
Also, the standard mile rate deduction tied to driving in the service of a charitable cause is not changing. It remains 14 cents for the entire year. That is because this rate is fixed by statute.
This is the first midyear increase the IRS has made to the standard mileage rate deduction since 2011.
Taking the standard mileage rate deduction is just one method of getting a tax break for qualifying expenses. Eligible taxpayers can choose instead to calculate the actual costs of using their vehicle and deduct that amount.
To learn about other federal income tax breaks, check out:
- “7 Income Tax Breaks That Retirees Often Overlook”
- “9 Federal Income Tax Breaks for Homeowners”
- “8 Tax Credits and Deductions for Parents”
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