Standard Mileage Rates Increase for 2022
Earlier this month, our team of seasoned tax experts shared a to be mindful of as you prepare to file your 2021 tax return. However, changes for 2022 are already underway – before we’ve even said “farewell” to our current tax season!
Below, we’ve outlined the standard mileage rates implemented by the IRS for 2021, as well as the recently updated policy for 2022.
2021 Standard Mileage Rates
The 2021, standard mileage rates decreased from 57.5 cents per mile to 56 cents. The medical mileage allowance also decreased from 17 cents to 16 cents per mile.
2022 Standard Mileage Rates
In December 2021, the IRS issued Notice 2022-03, which includes an increased reimbursement rate for standard mileage in 2022. Taxpayers will be able to use this rate to calculate their deduction amount if using an automobile for business purposes. After being decreased for two years in a row, the notice states that mileage rates will go up to 58.5 cents per mile for the 2022 tax year, which is a 2.5 cent per mile increase from 2021. Similarly, the medical mileage allowance was also increased from 16 cents to 18 cents per mile.
The newly released Bipartisan Infrastructure Investment and Jobs Act also addresses provisions related to federal-aid highway, transit, highway safety, motor carrier, hazardous materials research, and rail programs of the Department of Transportation. Click here to learn more.
AICPA’s Journal of Accountancy recently published an article that summarizes these updates for 2022. Click here to read the full article.
If your organization is seeking counsel for the 2021 or 2022 tax seasons, contact SST today.