Mileage Rate Increase

Date: June 16, 2022

If you use an automobile for a business, a recent update from the IRS may affect the way your business
deductions are calculated. In response to the recent rise in gas prices, the IRS has increased the mileage
rate for the remaining six months of 2022 from 58.5 cents per mile to 62.5 cents per mile for business
travel. The optional standard mileage rates can generally be used to calculate the deductible costs of
operating an automobile for business and certain other purposes such as driving for charity and military
moving expenses.
While the IRS normally updates these rates in the fall to be used for the upcoming calendar year, they
have chosen to make an exception in acknowledgement of the current economic situation. However, for
travel from January 1 to June 30 of this year, taxpayers should still use the rates previously set forth
here.
Taxpayers can refer to this announcement for a full explanation of the increased rates and what
purposes they apply for. If you have further questions about calculating these deductions and wish to
seek legal assistance, you can reach out to the Low Income Taxpayer Clinic by calling (812)-339-7668.


https://www.irs.gov/newsroom/irs-increases-mileage-rate-for-remainder-of-2022 

Announcement with new mileage rates: https://www.irs.gov/pub/irs-drop/a-22-13.pdf 
Notice with original mileage rates: https://www.irs.gov/pub/irs-drop/n-22-03.pdf 


Megan Burtis,
Low Income Taxpayer Clinic Law Clerk

Apply Online (24 Hours)

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The application should take about 20 minutes to complete. You will need to answer questions about your income, assets, and household size. Submitting an application does NOT mean that we will accept your case. You should hear from us within about 14 days with a decision on whether we will be able to take your case.

Indiana Legal Services, Inc. (ILS) is a nonprofit law firm and the largest provider of free civil legal assistance to eligible low-income people in Indiana. ILS helps clients who are faced with legal problems that harm their ability to obtain basic needs such as food, shelter, income, medical care or personal safety. ILS also handles cases in other areas including family law where there is domestic violence, housing, consumer law, access to health care, and access to government benefits. ILS does not handle any criminal matters.