The Internal Revenue Service (IRS) issued updated mileage rates, effective January 1, 2022, some of which have increased from 2021. These standard rates apply for the use of a car (also vans, pickups or panel trucks).
|Description and Rate Per Mile||2021||2022|
|Medical or Moving (see below) Purposes||16¢||18¢|
|In service of charitable organizations||14¢||14¢|
Taxpayers do have the option of calculating the actual costs of using their vehicle for business, as opposed to using the standard mileage rates listed above. To use the standard mileage rate, a taxpayer must choose to use it in the first year the vehicle is available for business. Then, in a later year, the taxpayer can switch to using actual expenses. If a taxpayer uses actual expenses for a vehicle, that taxpayer cannot switch to the standard mileage rate for that vehicle.
Leased vehicles must use the standard mileage rate method for the entire lease period if the standard mileage rate is chosen.
Miscellaneous itemized deductions have been suspended under the Tax Cuts and Job Act for 2018 for tax years beginning after December 31, 2017 through December 31, 2025. During this time period, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station.