Standard mileage rates for 2022 have increased, per the recently issued Notice 2022-03 from the Internal Revenue Service (IRS). Starting Jan. 1, 2022, standard mileage rates for the use of cars, vans, pickups or panel trucks will be as follows:
- 58.5 cents per mile for business use of a vehicle (2.5 cent increase from 2021)
- 18 cents per mile for medical purposes, or for moving purposes for qualified active-duty members of the Armed Forces (2 cent increase from 2021)
- 14 cents per mile for service to charitable organizations (current rate is set by statute and unchanged from 2021)
The IRS has also provided this comment per a recent news release to announce the changes in standard mileage rates as it pertains to the Tax Cuts and Jobs Act:
“It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station,” according to the IRS Newsroom.
Taxpayers may opt to calculate the actual cost of vehicle use as opposed to using the standard mileage rates. For leased vehicles, the standard mileage rate method must be used for the entire lease period, including renewals.
For more information, please contact your Windham Brannon advisor.
