IRS INCREASES GAS MILEAGE WRITE OFF

IRS increases gas mileage write off. As the economy shifts gears due to Covid, the war in Ukraine, and the Federal Reserve changing from a dozen years of easy money, to a more restrictive monetary policy, not to mention the rampant inflation that has overtaken the entire world, the IRS decided to increase the mileage write off for business owners, due to the increase in the cost of gasoline. The national standard mileage rate for business related driving is increasing to 62.5 cents a mile, starting in July, the IRS announced in a posted bulletin. That’s up from the 58.5 cents a mile rate first announced last December. It’s a small tweak designed to give more relief to taxpayers, due to the increase in the price of gasoline. IRS increases gas mileage write off.

When it’s time to calculate the standard mileage rate, the IRS normally comes up with its numbers once a year. 2011 was the last time the IRS made a mid-year adjustment to the rate. The four-cent rate increase is meant “to better reflect the recent increase in fuel prices”, said IRS Commissioner Chuck Retig. The IRS announcement arrived the same day that national gas averages breached the $5 a gallon mark. “We are aware a number of unusual factors have come into play involving fuel costs, and we are taking this special step to help taxpayers, businesses and others who use this rate”, Retig said.

The rate applies to business and self employed taxpayers, and it’s not meant to chip at commuting costs. Employees also cannot access this rate, but there’s nothing stopping bosses from reimbursing workers for mileage costs. You can find apps on the internet that track your mileage.

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