Posted On February 5th, 2023

If you itemize your deductions on your tax return, you may be interested to know that the IRS has updated the standard mileage rates for the use of a car. For 2023, the rates will be:

• 65.5 cents per mile driven for business use, up 3 cents from the increase that occurred midyear in 2022.
• 22 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, which is unchanged from the increase that occurred midyear in 2022.
• 14 cents per mile driven in service of charitable organizations. (This rate is set by law and remains unchanged from 2022.)

Also keep in mind that these rates apply not just to gasoline and diesel-powered vehicles, but also to electric and hybrid automobiles.

It is important to note that under the Tax Cuts and Jobs Act, you can’t claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. You also cannot claim a deduction for moving expenses, unless you are a member of the Armed Forces on active duty moving under orders to a permanent change of station.

Finally, remember that you always have the option of calculating the actual costs of using your vehicle rather than using the standard mileage rates. It takes more recordkeeping, but depending on your circumstances, it might be worth it.

This article carries no official authority, and its contents should not be acted upon without professional advice. For more information about this topic, please contact our office.