As gas prices surpass $5 per gallon, the IRS has increased their standard mileage rate deduction by $0.04 cents.
This goes into effect July 1, 2022 and brings the increase to $0.62 cents per mile.
These deductions can be made on eligible business trips.
In addition, the rate for deductible medical or active duty military will also increase by $0.04 cents.
This brings that deduction up to $0.22 cents per mile.
The standard deduction of $0.62 cents will apply to business trips made during the second half of 2022.
The adjustment is being made in response to the major increase in gas prices being felt all across the nation.
The IRS increasing mileage deductions in the middle of the year for fuel prices is not typical
According to CNBC, experts say this happening is not usual.
Since 2008 this has only happened 3 times.
The last time it happened was in 2011.
All of the times it happened was following major gas price increases.
You must keep good track of your driving records with dates to make the deduction.
There are mobile apps available to help you track mileage to make it easier when it’s time to claim.