Courtesy of Yeo & Yeo
The Internal Revenue Service issued Announcement 2022-13, increasing the optional standard mileage rate for the final six months of 2022 from 58.5 cents per mile to 62.5 cents per mile. The new rate will be effective from July 1, 2022, through December 31, 2022. The old rate of 58.5 cents per mile will remain in effect through June 30, 2022.
The new rate for deductible medical or moving expenses for active-duty members of the military will be 22 cents for the remainder of 2022, up 4 cents from the rate at the start of the year. The 14 cents-per-mile rate for charitable organizations, set by statute, remains unchanged.
In the IRS press release, IRS Commissioner noted: “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.” Employers should ensure that they properly account for the rate increase beginning July 1, 2022.
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