The IRS has announced a change in the standard mileage rate for the final six months of 2022. Effective July 1, the standard mileage rate will be increased to 62.5 cents per mile, up 4 cents from 58.5 cents at the beginning of 2022. Along with this increase, the IRS has also raised the mileage rate for medical and moving expenses to 22 cents per mile. (Please note that mileage associated with moving is only deductible for active-duty members of the military.)
While the standard mileage rate is typically determined in the beginning of the year, and lasts the whole year, the IRS has made this special adjustment due to the recent gasoline price increase.
As referenced from our blog in January of this year, below are details on what types of travel qualify when determining your mileage deduction.
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.
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