IRS to increase standard mileage rates by 8 cents
WASHINGTON - The IRS has announced that there will be an increase to the standard mileage rates through the rest of this year.
"Rising gas prices are having a major impact on individual Americans. Given the increase in gasoline prices, the IRS is adjusting the standard mileage rates to better reflect the real cost of operating an automobile," said IRS Commissioner Doug Shulman. "We want the reimbursement rate to be fair to taxpayers."
An increase of eight cents will take place starting July 1. This will increase the 50.5 cent rate which was set for the first half of the year to 58.5 cents a mile for all business miles driven, according to reports.
There are three types of mileage rates - business, medical/ moving, and charitable.
Medical or moving expenses will also increase by 8 cents, though the charitable rate is set by statute, not the IRS, and will remain the same, said the IRS.