Recently, the IRS has published a new Notice 2022-03. This notice states that the optional standard mileage rate for deducting automobile operating costs for business purposes will be 58.5 cents per mile beginning Jan. 1, 2022.
This standard mileage rate is also called safe harbor rate, which the employers mostly use to pay tax-free reimbursements to employees who utilize their own cars for business.
This rate has increased by 2.5 cents since 2021. Earlier, the standard mileage rate for businesses was 56 cents per mile driven. For medical care and Armed forces movement, the mileage rate has increased by 2 cents, from 16 cents per mile, to 18 cents per mile effective 2022.
The standard mileage rate for 2022 with respect to charitable organizations has remained unchanged, at 14 cents per mile.
With these new rules, people traveling by their own car for business purposes or medical purposes can get a tax deduction for the mileage they cover, thereby reducing their overall tax bill for the financial year.
For claiming these tax benefits due to mileage rates, you can simply check any online tax filing software. Such software will help you figure out all the mileage cuts you are entitled to for the largest tax reimbursement possible. All you have to do is answer some basic questions set up by the tax filing software, and you are ready to proceed.
Be First to Comment