IRS publishes 2022 standard mileage rates

 

The IRS recently released guidance (Notice 2022-03) providing the 2022 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.

Beginning on Jan. 1, 2022, the standard mileage rates for the use of an automobile are:

  • 58.5 cents per mile for business miles driven (up from 56 cents in 2021)
  • 18 cents per mile driven for medical or moving purposes (up from 16 cents in 2021)
  • 14 cents per mile driven in service of charitable organizations (no change from 2021)


In lieu of using the optional standard rates, taxpayers have the option of calculating the actual costs of using their vehicle—but only if taxpayers maintain adequate records or other sufficient evidence of the actual costs incurred.

The notice also provides the maximum standard automobile cost that may be used in computing the allowance under a fixed and variable rate plan—which allows employees who use their own vehicles for business to receive tax-free reimbursements from their employers for certain fixed and variable costs—in addition to the maximum fair market value of employer-provided automobiles first made available to employees for personal use in calendar year 2022 to value the personal use for income inclusion purposes. In both instances, the maximum cost/fair market value for 2022 is $56,100 for automobiles, trucks, and vans (up from $51,100 in 2021).

Taxpayers using the optional standard mileage rates and other special rules addressed in the notice must comply with Rev. Proc. 2019-46, which made numerous modifications to the rules for using optional standard mileage rates and the substantiation rules for automobile costs in order to reflect the changes made by the Tax Cuts and Jobs Act.

 

 

Contact:

 
 
 

 
 
Tax professional standards statement

This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.

 

More tax hot topics