Posted on 07/05/2022 9:22:59 AM PDT by tired&retired
For the final 6 months of 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the rate effective at the start of the year.
The new rate for deductible medical or moving expenses (available for active-duty members of the military) will be 22 cents for the remainder of 2022, up 4 cents from the rate effective at the start of 2022. These new rates become effective July 1, 2022.
In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2022. The IRS normally updates the mileage rates once a year in the fall for the next calendar year. For travel from January 1 through June 30, 2022, taxpayers should use the rates set forth in Notice 2022-03.
"The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices," said IRS Commissioner Chuck Rettig. "We are aware a number of unusual factors have come into play involving fuel costs, and we are taking this special step to help taxpayers, businesses and others who use this rate.”
While fuel costs are a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.
The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.
The first half of 2022 the rate was 58.5 cents per mile
glad i don’t have to deal wi that crap anymore...
So that business trip I took June 30 - since I got home at 12:01 on July 1 . . hmmm. Maybe I was confused and actually left on July 1. Yeah, that’s the ticket!
what about volunteer hrs?....
Stupid game with no prizes.
Happy to be out of it as well.
4 cents....wow...Please....let me kiss your feet...
Meaning actually, we (the IRS) will give government workers more money for THEIR TRAVEL Expenses and gas this year by raising THEIR REIMBURSEMENT twice in this fiscal year. The rest of you serfs (anybody who is not deducting business mileage expenses each day) get nothing at all.
100%
At $625 deduction per 1,000 miles it adds up.
If you figure a Fed tax rate of 25% + SE Tax of 14.13% (15.3% X 92.35%), that’s about 40 cents on the dollar tax savings without state and local tax.
If state and local taxes are another 5% to 7% you are now at 45 to 47% marginal rate.
For single taxpayers, the24% rate kicks in at $89,076 of taxable income and the 32% rate applies to income $170,051 to $215,950
I always tried to educate my tax clients to understand their marginal rates. That is the tax savings for each dollar of business expense or the increase applied to each dollar of business income.
If you are in the blue states with high state tax rates (Approx 10% if you live in NYC. (6% state + 4 % city)..
California = 9.3% of the excess of $58,634 (single)
Here are the 10 states with the highest income tax rates:
New York (8.82%)
Hawaii (8.25%)
Idaho (7.40%)
Maine (7.15%)
South Carolina (7.00%)
Connecticut (6.99%)
Nebraska (6.84%)
(Some states such as California are not included due to the graduated tax rates even though California top rate is 13.3%)
what about volunteer hrs?....
I think they sated the same at 14 cents as they are legislated.
The delegates to the Constitutional Convention had intended for ordinary citizen voters to vote representatives out of office for appropriating unpopular, unconstitutional taxes.
But corrupt, post-17th Amendment ratification lawmakers now escape taxpayers’ wrath by hiding behind non-elected bureaucrats running the constitutionally undefined IRS, especially in an election year, bureaucrats in all so-called federal regulatory agencies unconstitutionally weakening voting power imo.
Insights welcome.
And speaking of election year, Trump’s red tsunami of patriot supporters are reminded that they must vote twice this election year. Your first vote is to primary career RINO incumbents. Your second vote is to replace outgoing Democrats and RINOs with Trump-endorsed patriot candidates.
Again, insights welcome.
What happens if you drive an electric vehicle?
Hours are not deductible.
“Four cents a mile...Maybe I will go to a movie...by myself.”
Inaccurate.
Under the Articles of Confederation, congressmen were selected by the state legislatures and could be recalled by the legislatures.
Under the Constitution, neither congressmen nor senators are subject to recall, either by the voters or by the state legislatures. This has been litigated in federal court in several instances. You can only remove a congressman or senator by death, resignation, or expulsion by two thirds of the members of the House in which the person sits.
Mailed my paper return, and request for refund on February 8th. I have nothing to claim, no dependents, file single, and take the standard deduction for being an old fart. It’s been just about five months, and today, Where’s my refund is finally showing they have received my return. I assumed my return had been lost in the mail. It’s never taken this long for IRS to process my form or refund.
Why is there an IRS again?
Transitory.
Paper returns created a problem as the IRS still has many employees working from home. They can work on electronic filed returns from home but not paper filed returns.
They are rapidly getting caught up.
Amended returns that were paper filed were even worse.
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