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Tax & AccountingJune 09, 2022

IRS announces rare mid-year mileage rate change to begin July 01, 2022

Business, medical, and moving optional mileage rates increased in recognition of the recent fuel price surge.

The IRS recently announced a rare mid-year adjustment to the 2022 mileage rate, effective from July 01 - December 31, 2022.

  • The optional mileage rate will be 62.5 cents per mile, a 4-cent increase from the rate of 58.5 cents per mile in effect from January 01 – June 30, 2022.
  • The medical and moving expense rate will be 22 cents per mile, a 4-cent increase from 18 cents per mile – the rate in effect from January 01 – June 30, 2022.

These changes are reflected in IRS announcement 2022-13.   

Optional standard mileage rates are used to compute the deductible costs of operating an automobile for business, medical, or moving expense purposes, and also for determining the reimbursed amount of these expenses that is deemed substantiated.  

The IRS hasn’t made a mid-year mileage change in over decade, however, the agency states that it recognizes the need for such an increase in light of the “recent increases in the price of fuel.” The last time that the IRS made a similar change was in 2011, when a combination of Middle East tensions and a weak dollar drove up gas prices.

Mileage rate for charitable deductions remain unchanged

The mileage rate for the deduction of charitable contributions remains unchanged; it is fixed under § 170(i) of the Internal Revenue Code (Code) at 14 cents per mile.

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Mark Friedlich
Vice President of US Affairs for Wolters Kluwer Tax & Accounting
Mark Friedlich, a CPA & tax lawyer, is the Vice President of US Affairs for Wolters Kluwer Tax & Accounting. He is a member of the U.S. Senate Finance Committee’s Chief Tax Counsel’s Advisory Board, advisor to 14 state taxing authorities, and has been a member of the American Bar Association’s Tax Section and AICPA’s Tax Section leadership teams. Prior to joining Wolters Kluwer he was a COO and Principal at PwC.

 

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