21 December 2021 Federal mileage rates and luxury vehicle limit increase for 2022 Effective January 1, 2022, the business standard mileage rate for use of a car (including vans, pickup trucks, and panel trucks) increases from $0.560 to $0.585 and the rate for medical and relocation mileage increases from $0.160 to $0.180. Mileage related to charity is set by law and remains at $0.14 per mile. (Notice 2022-03; Notice2021-02.) It is important to note that under the Tax Cuts and Jobs Act, effective for tax years 2018 through 2025, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, except members of the Armed Forces on active duty moving under orders to a permanent change of station. For the rates and limits applicable in 2021 see our special report. Pursuant to the vehicle valuation limit that applies to use of the optional fleet-average and vehicle cents-per-mile valuation methods, the maximum fair market value of the vehicle (including trucks and vans) first made available to employees in calendar year 2022 increased from $51,100 to $56,100.
Document ID: 2021-2291 | |||||||||||||||||||||||||
