The Internal Revenue Service (IRS) has announced the optional standard mileage rates for 2022 which taxpayers can use to calculate the deductible costs of operating an automobile for business charitable medical or moving purposes.
Starting on Jan. 1 2022 the standard mileage rates for the use of a car (also vans pickups or panel trucks) will be:
• 56 cents per mile for business miles driven up from 50 cents in 2021.
• 16 cents per mile driven for medical or moving purposes up from 15 cents in 2021.
• 14 cents per mile driven in service of charitable organizations.
The business mileage rate increased 3.2 cents per mile and the medical/moving rate increased 1 cent per mile from the respective 2021 rates. The charitable rate is set by statute and remains unchanged from the prior year.
Taxpayers may use the standard mileage rates to calculate the deductible costs of operating an automobile for business charitable medical or moving purposes. These rates apply to all miles driven starting Jan. 1 2022.
“The optional standard mileage rates are based on an annual study of the fixed and variable costs of operating an automobile” said IRS Commissioner Chuck Rettig. “Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.”
Business owners and self-employed individuals who use their vehicle in their business can deduct their actual vehicle expenses or they can use the standard mileage rate.
The standard mileage rate for business is calculated using an annual study of the fixed and variable costs of operating an automobile. The rate for 2022 reflects an increase of 3.2 cents per mile from the rate for 2021. The standard mileage rate cannot be used for more than four vehicles used simultaneously.
The standard mileage rate for medical or moving purposes is based on the variable costs such as gasoline oil and depreciation. The rate for 2022 reflects an increase of 1 cent per mile from the rate for 2021.
The standard mileage rate for charitable purposes is set by statute and remains unchanged at 14 cents per mile.
To calculate the deductible costs of operating an automobile taxpayers can use actual expenses or the standard mileage rates. Taxpayers must use the same method in calculating the deductible vehicle expenses for the entire year. They cannot switch from one method to the other during the year.
If a taxpayer uses the standard mileage rate he or she can also deduct actual parking fees and tolls in addition to the standard mileage rate. In addition a taxpayer can deduct the actual expenses of operating a vehicle for business purposes such as depreciation lease payments insurance and maintenance and repairs.
How much is the mileage rate for 2022?
Answer: The mileage rate is $0.
56 per mile.
How often does the IRS release a new mileage rate?
Answer: The IRS releases a new mileage rate every year.
When will the new mileage rate for 2022 take effect?
Answer: The new mileage rate for 2022 will take effect on January 1 2022.
How is the mileage rate determined?
Answer: The mileage rate is determined by the IRS based on the cost of operating a vehicle.
Why does the mileage rate change from year to year?
Answer: The mileage rate changes from year to year because the cost of operating a vehicle changes from year to year.
What expenses does the mileage rate cover?
Answer: The mileage rate covers the cost of gasoline oil maintenance repairs tires insurance and depreciation.
Can I deduct the mileage rate if I use my personal vehicle for business purposes?
Answer: Yes you can deduct the mileage rate if you use your personal vehicle for business purposes.
Do I have to keep track of my mileage in order to deduct it?
Answer: Yes you have to keep track of your mileage in order to deduct it.
How do I keep track of my mileage?
Answer: You can keep track of your mileage by using a mileage tracking app a mileage tracking device or a mileage tracking spreadsheet.
How do I know how much to deduct for mileage?
Answer: You will deduct the mileage rate for every mile that you drive for business purposes.
Can I deduct the mileage rate if I use my personal vehicle for charitable purposes?
Answer: Yes you can deduct the mileage rate if you use your personal vehicle for charitable purposes.
Can I deduct the mileage rate if I use my personal vehicle for medical purposes?
Answer: Yes you can deduct the mileage rate if you use your personal vehicle for medical purposes.
Can I deduct the mileage rate if I use my personal vehicle for moving purposes?
Answer: Yes you can deduct the mileage rate if you use your personal vehicle for moving purposes.
Can I deduct the mileage rate if I use my personal vehicle for job-related purposes?
Answer: Yes you can deduct the mileage rate if you use your personal vehicle for job-related purposes.
Can I deduct the mileage rate if I use my personal vehicle for educational purposes?
Answer: Yes you can deduct the mileage rate if you use your personal vehicle for educational purposes.
