Mid-Year Standard Mileage Rate Increase
In Announcement 2022-13, the IRS indicated that it is raising the standard mileage allowance from 58.5 to 62.5 cents per mile, effective July 1, 2022. The lower amount will apply for all miles traveled during the first half of 2022, while the increased amount will apply for all miles traveled on or after July 1, 2022.
The allowance for medical travel will also increase from 18 to 22 cents per mile, effective on July 1, 2022.
Practitioners should alert their clients that use the standard mileage allowance that they will need to separately track the number of business miles for the first half of 2022 and for the second half.