[1]Beginning January 1, 2023, optional standard mileage rates used by the IRS to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes will be:
- 65.5 cents per mile driven for business use, up 3 cents from the midyear increase setting the rate for the second half of 2022.
- 22 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, consistent with the increased midyear rate set for the second half of 2022.
- 14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2022.
Under the 2017 Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station. For more details see Moving Expenses for Members of the Armed Forces [2].
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. If you’d like advice on calculating standard vs. itemized deductions, please contact your ShindelRock tax professional [3].