2022 IRS Mileage Rate: What to Expect
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On December 17th, 2021, the IRS announced the 2022 IRS mileage rates.
The 2022 mileage rates are the rates you use to calculate your mileage expenses for business miles driven starting on Jan 1, 2022.
The 2022 IRS mileage rates are:
Business: 58.5 cents per mile (up 2.5 centers per mile from the 2021 rate)
Charitable: 14 cents per mile (this rate is set by a statute and remains unchanged from 2021)
Medical or moving: 18 cents per mile (up 2 cents from the 2021 rate)
The 2021 IRS mileage rate amounts are:
Business: 56 cents per mile (down from 57.5 cents from 2020)
Charitable: 14 cents per mile (down from 17 cents from 2020)
Medical & moving: 16 cents per mile (down from 20 cents from 2020)
The 2021 IRS mileage rates are the rates you would multiply by all the tax-deductible miles you drove in 2021 to calculate your 2021 mileage tax deduction amount.
How to Use IRS Mileage Rate Tax Deduction Amounts
There are two methods a taxpayer can use to calculate business use car tax deductions. The taxpayer must choose one, you cannot use both at the same time. It’s up to the taxpayer to choose which one is best for them.
- the IRS standard mileage rate method
- the IRS actual expense method
The IRS mileage rate tax write-off amounts only apply to the first method, the Standard Mileage Rate Method. Therefore, you do not need this chart if you are using the Actual Expense Method. For a detail of the two different methods, and what is required of each method, please check out the following article:
How To Maximize Business Use Car Tax Deductions: Standard Mileage Rate Method vs Actual Expense Method
About Falcon Expenses
Falcon Expenses is a top-rated mobile application for self-employed and small businesses to track expenses and tax deductions. Falcon customers record $6,600, on average, in annual tax deductions. Get started today. The longer you wait, the more tax deductions you miss out on.
Automatically track mileage expenses and expenses, keep an odometer log, receipt vault and log billable hours. Quickly organize expenses by time period, project, or client. Easily prepare reports for email to anyone in PDF or spreadsheet formats, all from your phone. Use for keeping track of tax deductions, reimbursements, taxes, record keeping, and more. Falcon Expenses is great for self-employed, freelancers, realtors, business travelers, truckers, and more. Find out more, here.
Check out the following articles about Falcon Expenses features and services:
- How to Scan and Manage Receipts with Falcon Expenses
- How to Track Mileage Expenses with Falcon Expenses
- Falcon Expenses Expense Report Template & What Expense Reports Look Like
- How to Create an Expense Report with Falcon Expenses
- What is Included in Falcon Expenses Mileage Expense Log
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