The IRS announced on June 9, 2022, that it would raise the standard mileage rate for business mileage for the final six months of 2022 from 58.5 cents per mile to 62.5 cents per mile due to the high cost of gas.
Mid-Year IRS Mileage Rates Increase
The normal mileage rate for business travel will be 62.5 cents per mile for the latter six months of 2022, an increase of 4 cents from the rate in place at the beginning of the year. For the balance of 2022, the new rate for deducting medical or relocating expenses (accessible to active-duty military personnel) will be 22 cents, an increase of 4 cents from the rate in effect at the beginning of 2022. On July 1, 2022, the revised mileage rates go into effect.
While fuel costs play a key role in the mileage computation, other expenditures, including depreciation, insurance, and other fixed and variable expenses, are also taken into account.
Instead of keeping track of actual costs, the optional business standard mileage rate is utilized to calculate the deductible costs of driving a car for work-related purposes. The federal government and many companies also use this rate as a benchmark when determining how much to pay for employee miles.
The option to calculate the actual costs of operating a car, as opposed to utilizing the normal mileage rates, is always available to taxpayers.
Resolve Your Tax Bills
If you’ve found yourself in a nasty mess with the IRS, take a deep breath. For taxpayers who may have difficulty paying off an excessive amount of tax debt, there’s a new and improved relief program that consolidates many major relief programs into a one-size-fits-all assistance program. Any issues regarding back taxes, unfiled years, or any other tax-related problems may be solved through one program; the IRS Fresh Start Program!
How Simple Is Qualifying?
Considering that the Fresh Start Program is a federal program, you would think meeting the qualifications may be very difficult, but really, it’s a lot simpler and quicker than you think. Take the following steps in order to find out if you are eligible in as little as 3 minutes.
- Fill out some basic information about yourself and your back taxes here.
- Have a representative reach out to you to discuss your eligibility.
- Go through the enrollment process and finally reduce or eliminate your tax liabilities.
