The last mid-year IRS adjustment was in 2011
With summer underway, rising temperatures along with high gas prices have many hot under-the-collar. To offer a small respite, the IRS has announced a special adjustment that will increase the standard business mileage rate for the remainder of 2022.
Effective July 1, the increase will bring us to 62.5 cents per mile for business travel. For travel from January 1 through June 30, 2022, taxpayers should use 58.5 cents per mile.
Simply put, when a vehicle is used to go between two different places of work, the mileage reimbursement is applicable. This would include travel to an off-site business meeting, post office, bank, office supply purchases, etc. Commuting to and from home to your work would not apply.
The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by many businesses to reimburse their employees for mileage.
Smith Dickson is here to assist you with all of your tax needs. Please contact Austin Ray, CPA, CFE, or any of our staff with your questions.