The IRS has updated the 2022 mileage reimbursement rates to account for the rising cost of gas. Effective July 1, 2022 the new rate for business related travel increased $0.04 from $0.585 per mile to $0.625. Driving for medical purposes may be deducted at $0.22 per mile and mileage for service to a charitable organization is unchanged at $0.14/mile. Mileage for moving expenses is no longer deductible.
You also have the option of calculating the actual costs of using your vehicle instead of using the standard mileage rate. However, you will still need to keep a mileage log to be able to calculate what percent of your actual expenses are deductible.
Remember – miscellaneous deductions (which includes unreimbursed employee expenses and home office deductions) are no longer deductible. Therefore, we recommend that employees get reimbursed for business mileage and other business expenses. If, however, you file form schedule C you can still deduct the mileage and home office deductions (this applies to self-employed individuals).
If you are a minister subject to Self-employment taxes, any unreimbursed mileage can be used to reduce your self-employment taxes (but not your federal income taxes).
We are here to help if you have any questions.