Rising gasoline prices have caused the IRS to raise the standard mileage deduction rate. Starting on July 1 and ending at the close of the 2022, the per mile rate will jump from 58.5 cents to 62.5 cents for business automobiles. The rate for moving and medical expenses is also increasing by four cents, to 22 cents. It will remain an option for taxpayers to calculate actual costs rather than take the standard deduction rate. The average price of regular unleaded in the US is currently just under $5 a gallon.
- Effective July 1, the rate will be 62.5 cents per mile for business use, four cents above the current rate.
- The option will remain to calculate actual costs rather than taking the standard deduction rate.
- The average price of gas in the U.S. has risen to $4.97 a gallon.
“The seemingly never-ending rise in gas prices across the United States caused the IRS on Thursday to raise its standard mileage deduction rate for 2022.”
Read more: https://smallbiztrends.com/2022/06/irs-raising-2022-standard-mileage-deduction-rate-for-business.html