The IRS has updated the 2022 standard mileage rates for vehicle uses that qualify for a tax deduction. These rates apply for most passenger vehicles, including cars, vans, SUVs and pickup trucks. Here are the main mileage rates for this year:
– 58.5 cents per mile for business use of a vehicle (up 2.5 cents from 2021)
– 18 cents per mile for certain medical purposes (up 2 cents from 2021)
– 14 cents per mile for vehicle use for qualifying charitable work (unchanged)
– 18 cents per mile for Armed Forces members who have a permanent change of station, and use their vehicles for relocation (up 2 cents from 2021)
In most cases, taxpayers who qualify to claim a vehicle expense deduction may either use the standard mileage rate or actual expenses to figure their deduction. However, if you use your car or truck for business, you must use the standard rate for the first year you put the vehicle in service if you want to preserve this option for future years.
A tax professional can help you determine whether the standard mileage rate or actual expenses will result in a larger deduction in your circumstances. Keep in mind that if you choose to deduct actual expenses, you will need to keep detailed records of all vehicle-related costs.