2022 IRS Mileage rate change

Hi there!

OK, do you use your car for business, charity, or medical purposes?

One possible way to get a tax deduction - is to use the IRS mileage rate!

You must keep a detailed contemporary record of the miles you drive each day & for what purpose. Be specific - record the date, where you went, the purpose of the trip, and the number of miles driven there & back. Also make note of your odometer at the beginning & end of the year, since you will need to report both -> the tax deductible miles & total 2022 miles. You can do this on paper, on your phone, or using an app. But you MUST have a detailed daily record... and there are some limitations, see below link & be sure to ask!

Personal miles driven for charity work or medical may not be deductible for your Federal income taxes, if you take the large "standard deduction" instead of itemizing... but they might still be deductible for Oregon since its' standard deduction is much lower. Plus there can be a special medical deduction for some seniors! The mileage rate is lower for these purposes, but any valid tax deduction is a good thing!

If the miles driven are for business & you operate a sole proprietorship or single member LLC - and file the default IRS form 1040 Schedule C... that detailed record is pretty much all you need (oh... and a car! you can't deduct your miles on a bicycle or deduct a meal as fuel for walking there. Yes, I've been asked to deduct both of those, really!). Just give me that mileage info at tax time!

But if your business mileage is for a corporation (s or c) or a multi-member LLC, then you need to get the business to reimburse you for the use of your personal car before 12-31-22, or it won't be deductible. The mileage rate may work, but if you drive a luxury car - maybe not! See link for limitations & alternate methods.

Please see this IRS publication for details -> 2021 Publication 463 (irs.gov)

The main reason this topic is timely is because 2022 is a bit more complex, as the IRS just changed the mileage rate mid-year. Jan-June = 58.5 cents per mile. July-Dec = 62.5 cents per mile. Oh boy...

IRS increases mileage rate for remainder of 2022 | Internal Revenue Service

Anyway, as usual - if you have tax questions, please just ask!  GARLAND