For the gig workers, the self-employed, or small business owners, the IRS made the price of driving ourselves around for work a little cheaper. With US gas prices soaring over the $5 per gallon mark, everyone can agree that every penny counts and every mile matters.
As of July 1, 2022, eligible business travel will increase by 4 cents, from 58.5 to 62.5 cents per mile, due to spiking fuel costs in part due to overwhelming demand and the ongoing war in Ukraine.
IRS Commissioner Chuck Rettig released a statement saying, “The IRS is adjusting the standard mileage rates to reflect the recent increase in fuel prices better” Mr. Rettig went on the say, “We are aware a number of unusual factors have come into play involving fuel costs, and we are taking this special step to help taxpayers, businesses and others who use this rate.” This increase has also been made available for eligible medical & military travel. Still, the rate for charitable or not-for-profit will remain the same at just 14 cents per mile. A mid-year increase by the IRS is exceptionally rare, with the last such summer adjustment being made in 2011. To take advantage of this adjustment, tracking your business travel miles and documenting them for your tax professional to calculate is essential.
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