Mileage Reimbursement Rates Increase for Inflation

Posted by BAS - 16 June, 2022

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The Internal Revenue Service increased the medical and business reimbursement mileage rates for the last six months of 2022. It is extremely rare for the IRS to issue a mid-year change to reimbursement rates but did so to address rising inflation.

Effective July 1 through December 31, 2022, the standard mileage rate for medical reimbursements will be 22 cents per mile.

The existing 2022 mileage rate of 18 cents per mile continues to apply to deductible transportation expenses paid or incurred before July 1, 2022, and to mileage allowances paid (1) to an employee before July 1, 2022, or (2) with respect to transportation expenses paid or incurred by the employee before July 1, 2022. 

Effective July 1, through December 31, 2022, the standard mileage rate for computing the deductible costs of operating an automobile for business will be 62.5 cents per mile.

The existing mileage rate of 58.5 cents per mile continues to apply to deductible automobile business expenses paid or incurred before July 1, 2022, and to mileage allowances paid (1) to an employee before July 1, 2022, or (2) with respect to transportation expenses paid or incurred by the employee before July 1, 2022. 

IRS Announcement 2022-13 with the terms of the changes may be accessed by clicking here.

Topics: HR & Benefits Compliance, HR & Benefit Plans, HR & Benefits News, Technology News


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