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2022 Mileage Rates Increased
The IRS has increased mileage rates effective July 1, 2022.
Rate per Mile | July 1, 2022 thru Dec 31, 2022 | Jan 1, 2022 thru Jun 30, 2022 |
Business | 62.5 cents | 58.5 cents |
Medical | 22 cents | 18 cents |
Charitable | 14 cents | 14 cents |
What this means for you:
As always, you should supply a detailed mileage log to your tax professional.
If you are an individual that tracks your mileage based on your beginning and ending odometer reading, then you will need to supply the odometer reading as of July 1 as well.
Please keep in mind that the IRS requires a contemporaneous mileage log in the case of an audit.
Read more about it here: https://www.irs.gov/newsroom/irs-increases-mileage-rate-for-remainder-of-2022
2022 Mileage Rates
The IRS has issued new mileage rates for 2022.
58.5 cents per mile for business
18 cents per mile for medical
14 cents per mile for charitable purposes
Read more about it here: https://www.irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2022
Advanced Child Tax Credit
For those taxpayers that would like to opt out of the Advanced Child Tax Credit payments.
The website to do so is below. Please consider how receiving or not receiving these payments in advance can affect your tax return.
Receiving a credit as an advance payment can have a negative affect on your tax return. If you have owed in the past, you will likely owe more. If you have received a large refund in the past, your refund will be smaller. What to consider is whether or not receiving these payments will cause you to owe if you have received a refund in the past.
The formula for determining tax liability, is the calculated income tax (based off your taxable income) less non-refundable credits you qualify for plus other taxes equals tax liability. Then determine total payments, what has been withheld plus estimates paid plus any refundable credits you may qualify for. This total payments is then reduced by the tax liability to determine if there is amount owed or a refund.
When you receive advance payments of credits, these credits cannot be considered when calculating the tax owed or refund.
If you would like clarification for your situation, please reach out to your tax preparer.
https://www.irs.gov/credits-deductions/child-tax-credit-update-portal
2021 Mileage Rates
The IRS has issued new mileage rates for 2021.
56 cents per mile for business
16 cents per mile for medical
14 cents per mile for charitable purposes
Read more about it here: https://www.irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2021
2020 Tax Season
The 2020 tax season is right around the corner. We will be available to meet with clients in person, or via Zoom. Please call our office if you are interested in using our services for tax preparation.