The Internal Revenue Service (IRS) has announced new mileage rates for 2022 for use in calculating reimbursements or deductions for tax purposes:
- Business use: 58.5 cents a mile, up from 56 cents a mile in 2021
- Medical use: 18 cents a mile, up from 16 cents a mile in 2021
- Moving use: 18 cents a mile, up from 16 cents a mile in 2021
- Charitable use: 14 cents a mile, the same as in 2021
Additionally, the standard vehicle cost, used to calculate FAVR (Fixed and Variable Rate) programs, may not exceed $56,100, up from $51,100 in 2021.
To read more, IRS Notice 2022-03 may be found on the IRS website: irs.gov/pub/irs-drop/n-22-03.pdf.
Let’s connect and we’ll show you how a FAVR (Fixed and Variable Rate) plan can reduce cost when compared to the IRS rate for business use.