With the new year come new mileage rates. If you keep track of your mileage, you’ll want to take note of this information.
Business Use: The new rate is 58.5 cents per mile, up 2.5 cents from the 2021 rate.
Medical or Moving Use: The 2022 rate is 18 cents per mile, a 2 cent increase from 2021.
Charitable Use: This rate remains the same from 2021 at 14 cents per mile.
You also have the option to calculate the actual vehicle costs you incurred over the year rather than using the standard mileage rates.
As a reminder, with the Tax Cuts and Job Acts, most taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Also, active-duty members of the Armed Forces are the only taxpayers who can claim a deduction for moving expenses.
While most taxpayers do not itemize their deductions anymore, for some it is still advantageous to do so. If you plan to itemize your deductions, here is a reminder of the specifics of what can be included when calculating your mileage.
Driving to and from work does not qualify for business use mileage. However, if you are required to use your own vehicle to drive to customers or to different locations for meetings, those miles would qualify.
If you have a lot of medical issues, you may benefit from keeping track of your medical-related mileage. This would include driving to get to doctor and dentist appointments, picking up prescriptions, and getting to therapy sessions.
If you volunteer for a charity, you can deduct the miles you drive to get to and from the organization’s location. Besides deducting mileage, you can also deduct any parking or tolls that you may encounter during the drive. As a reminder, in order for the mileage to be deductible, the organization must be registered as a tax-exempt organization. Find out if the organization you volunteer at qualifies.
If you have any questions regarding mileage and what qualifies, don’t hesitate to reach out.
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